President Trump has been busy reshaping U.S. strategic interests through a mineral deal with Ukraine, oil licence cancellation in Venezuela, and selling a golden card toward U.S. citizenship, each with significant implications while China sees opportunities. On Friday, he will meet Ukrainian President Zelensky in Washington to sign an agreement granting the U.S. access to Ukraine’s vast rare earth mineral deposits—such as graphite, titanium, and lithium—aiming to reduce America’s reliance on China for these critical resources while providing security through American worker presence in the region. Trump recently announced the reversal of a concession agreement that allowed Chevron to operate in Venezuela’s oil sector, aiming to cripple Venezuela’s production. While the mineral deal could weaken China’s leverage over the U.S. in resource supply, the Venezuela decision might counteract this by offering China a chance to fill the energy vacuum. These actions illustrate Trump’s “America First” approach, prioritising U.S. economic and strategic gains, but they also risk destabilising alliances and power holds.
EQUITY
Wall Street ended mixed as investors reacted to housing data and anxiously waited for Nvidia's quarterly results. Tech fared better than industrials, with the Nasdaq rising 0.3% and the Dow losing 0.4%. Nvidia ends 4% and higher in the after-trading session as the semiconductor index only gains 2%, while consumer staples experience the largest declines. Tesla dropped below $300 a pop, suffering from declining European deliveries. Taser maker Axon Inc. jumps 15% on JPMorgan upgrade.
GOLD
Gold prices stay unchanged on Wednesday in a fairly volatile trading range after prices break below to test $2900 after Ukraine is set to sign Trump's mineral deal on Friday. Spot gold fell back to support area after failing to break higher than $2,920 in the Asian session due to a stronger dollar and rising Treasury yields. Investors are closely monitoring the PCE index for insights into Federal Reserve policy and inflation trends.
OIL
Brent dropped below $73 per barrel, nearing a two-month low after Trump announced a 25% tariff plan on the European Union that could lead to weaker demand. Including a Russia-Ukraine peace deal and a to-be-signed U.S.-Ukraine mineral cooperation, there is a lot of volatility going on in the crude oil market. Even with a cut in U.S. crude inventories, rising stockpiles at key hubs and trade war risks have pushed down market sentiment.
CURRENCY
The U.S. dollar rebounded after President Trump's shifting tariff announcements targeting Europe in addition to Canada and Mexico, pushing the dollar index to 106.7. The euro held steady considering tariff threats and German coalition talks, while the Canadian dollar and Mexican peso were pressured to multi-week lows. The yuan continues to weaken as tariff risk and reduced expected demand for its minerals come into play. The U.S. economic growth report is expected with an unchanging expectation for two Federal Reserve rate cuts in 2025 starting in June.
