Market Analysis

Japan’s Nikkei 225 remains supported by AI optimism, a weak yen, and foreign investor confidence, but the index is struggling to hold above the 60,000 level as oil prices, yen intervention risk, and BOJ uncertainty make traders more cautious.

Hong Kong stocks are still getting support from stronger China growth data and renewed enthusiasm around AI-linked listings, but rising oil prices and fresh Gulf tension are keeping the Hang Seng from turning that support into a clean upside run.

Germany’s DAX is getting some support from a softer geopolitical tone and expectations that the ECB will stay on hold for now, but rising energy stress and a sharp drop in German investor confidence are still limiting the case for a broad, durable rebound.

Palladium is holding up better than a pure demand-destruction story would suggest, but the market still lacks a clean bullish engine. Supply discipline, hybrid demand, and emerging industrial uses are offering support, while a firmer dollar and the long-term shift toward EVs continue to cap upside.

Platinum is staying relatively supported because a still-tight supply backdrop and ongoing autocatalyst demand are offsetting part of the pressure from a firmer U.S. dollar, higher yields, and renewed Middle East inflation risk.

USD/CHF is stabilising near the 0.78 area because the Swiss franc is still supported by safe-haven demand, but the Swiss National Bank has become more openly concerned about excessive franc strength and has raised its willingness to intervene in FX markets.

The Russell 2000 has recovered from its late-March correction as lower oil prices improved risk appetite and revived hopes that financing pressure on smaller companies may ease. But inflation is still elevated, the Fed remains cautious, and that continues to limit the case for a smooth small-cap breakout.

Copper is staying supported as fresh supply-side pressure returns to the market, including expected output cuts at Chinese smelters and disruption risks in key producing regions. But weaker Chinese import demand and lingering growth uncertainty are still stopping the rally from becoming a clean breakout.

EUR/GBP is staying supported because the latest energy shock is reinforcing expectations that the ECB may need to stay tighter for longer, while the Bank of England looks more constrained by weaker UK growth and the domestic cost hit from higher fuel prices.