Source: Wall Street News

**Source: Wall Street Journal**  

**Macro Data Boosts Rate Cut Expectations, Markets Now Price in Two Fed Cuts This Year**  

The dollar continues to weaken while Asian emerging market currencies rally broadly, with the Indonesian rupiah and South Korean won leading gains. The yen and Swiss franc strengthen. U.S. Treasury yields extend declines by over 3 basis points.  

U.S. equity futures trade flat, European stocks open slightly higher, while Asia-Pacific markets show mixed performance—Japanese and South Korean shares edge up, while Vietnam's index falls about 1%.  

**Key Market Movements:**  

- **U.S. equity futures** hover near flat: Dow +0.05%, S&P 500 -0.01%, Nasdaq 100 -0.07%  

- **European stocks** open higher: Euro Stoxx 50 +0.1%, Germany DAX +0.4%, UK FTSE 100 +0.3%, France CAC 40 +0.3%  

- **Asian markets mixed**: Nikkei 225 flat, Topix +0.1%, KOSPI +0.2%, Taiwan Weighted Index +0.5%, Vietnam VN Index -1%, India Nifty 50 -0.1%, Sensex -0.3%  

- **Dollar Index** falls over 0.2%: USD/JPY -0.3%, EUR/USD +0.2%, GBP/USD +0.2%  

- **U.S. Treasury yields** extend declines: 10-year yield down ~5bps after Thursday's 10bp drop  

- **Commodities**: Spot gold -1%, oil prices flat  

- **Cryptocurrencies**: Bitcoin +0.4%, Ethereum +2.3%  

**Market Drivers:**  

Vey-Sern Ling, Managing Director at Union Bancaire Privée, notes: "Markets lack direction currently. After last weekend's U.S.-China tariff de-escalation, new catalysts are needed. Hopes rested on Chinese tech earnings this week, but Alibaba's results failed to deliver."  

Asian currencies have strengthened in recent weeks due to:  

1) Concerns over U.S. economic prospects from President Trump's reciprocal tariff proposals, triggering capital outflows from dollar assets  

2) Optimism about trade negotiations with Washington  

Weak U.S. economic data this week further reinforced Fed rate cut expectations.  

**Fixed Income:**  

- U.S. 10-year yield ~5bps lower, 2-year down ~4bps  

- Germany 10-year yield -8bps to 2.62%  

- UK 10-year yield -5bps to 4.66%  

- Japan 10-year yield -1.5bps to 1.455%  

**Commodities & Crypto:**  

- Brent crude +0.05% above $64.50, WTI +0.03% above $61.60  

- Gold tumbles $5.52/oz in 5 minutes to $3,196.33 (-1%)  

- Bitcoin: $103,928.06 (+0.4%), Ethereum: $2,595.07 (+2.3%)  

- Containerized Freight Index (Europe route) -8.00% to 1,654.0  

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