Market Highlights 💡 - 19 March 2025

U.S. Stocks Close Lower Ahead of Fed Decision; Hong Kong Stocks Surge to Three-Year High on Trade Hopes

Market Performance:

🇺🇸 S&P 500 Index: -1.06% 📉

🇺🇸 Nasdaq Index: -1.71% 📉

🇪🇺 Stoxx 600 Index: +0.61% 📈

🇯🇵 Nikkei 225 Index: +1.20% 📈

🇭🇰 Hang Seng Index: +2.46% 📈

🇨🇳 CSI 300 Index: +0.27% 📈

🇸🇬 Straits Times Index: +0.92% 📈

Market Overview

Wall Street markets were under pressure as the S&P 500 and Nasdaq Composite Index fell 1.1% and 1.7%, respectively. This was driven by a sell-off in tech stocks, as investors reduced exposure to U.S. risk assets ahead of the upcoming FOMC meeting.

The Eurozone ZEW Economic Sentiment Index rose to 39.8 in March 2025 (forecast: 39.6), significantly higher than last month's 24.2, as the German Parliament approved increased spending on defense and infrastructure.

Asia-Pacific markets closed higher, with the Hang Seng Index and CSI 300 Index rising 2.5% and 0.3%, respectively. The rally was fueled by hopes of potential U.S.-China trade talks, which could ease tensions between the world's two largest economies.

Upcoming Events

Wednesday: Investors will focus on Japan's export data, the Bank of Japan's interest rate decision, and the U.S. Federal Reserve's interest rate decision.

Thursday: The market will react to China's 1-year and 5-year Loan Prime Rate (LPR) updates and the release of U.S. initial jobless claims data.

Friday: The week will conclude with the release of Japan's inflation data.

Key Things to Know Today

1. U.S. President Trump and Russian President Putin discussed a potential 30-day ceasefire agreement. Moscow agreed to stop attacking Ukraine's energy infrastructure but did not commit to a full 30-day ceasefire.

Trump Putin ceasefire talk

2. Nvidia $NVIDIA Corp(NVDA)$  and General Motors (GM) $General Motors(GM)$  have partnered to integrate AI technology into autonomous vehicles using Nvidia's Drive AGX platform. This collaboration was announced at GTC, aiming to accelerate self-driving technology. Additionally, Nvidia is expanding into AI-powered 6G networks in collaboration with telecom partners.

Nvidia x GM collaboration 

3. Alphabet (Google) $Alphabet(GOOG)$  acquired cybersecurity company Wiz for $32 billion in an all-cash deal. This move is aimed at enhancing Google Cloud's security capabilities and diversifying beyond its advertising business.

Google acquired Wiz

4. BYD $BYD COMPANY(01211)$  launched the Super e-Platform, a battery technology that enables 400 km of range with just 5 minutes of charging, matching the speed of refueling a gasoline vehicle. The company plans to establish 4,000 ultra-fast charging stations in China this year and increase NEV market penetration to 50%.

BYD Super e-platform

5. Tencent Music's $Tencent Music(TME)$   Q4 revenue grew by 8.2% due to a recovery in streaming demand. While its paid subscriber base continued to grow, social entertainment revenue fell by 13% year-over-year, largely due to regulatory restrictions.

Tencent Music

Key Takeaway

Markets are closely watching Federal Reserve Chairman Jerome Powell's press conference on Wednesday. He is expected to maintain a positive economic outlook while signaling that the Fed is prepared to respond to risks, including uncertainties surrounding Trump's trade policies.

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