This week started with gloomy sentiment after Easter holiday, as low risk appetite amongst investors increased demand for haven assets like Gold, which reached an all-time high. US Dollar selling bias over trade-related uncertainties & Fed rate cut bets contributed to bearish USD sentiment, taking USD to 3-year lows with EURUSD passing 1.156 and USDJPY passing 140 level. Large earnings from Tesla, Alphabet & Intel also featured, while markets were looking for stability clues in US/China trade war rhetoric. Read more below: Golden Surge
Gold was once again in the spotlight, this week surging to a new all-time high of USD 3,500. A combination of trade-related uncertainties & geopolitical developments amongst other things contributed to general risk-off sentiment, driving demand for haven assets like gold. Weaker US dollar helped XAUUSD to 3,500 before a sharp reversal. Ole Hansen outlines the picture on Gold and its drivers:
Blowout top leaves Gold in consolidation mode Intel earnings forecast disappoints
Intel's Q1 2025 earnings report revealed a mixed performance. The company reported a revenue of $12.7 billion, which was flat year-over-year, and a non-GAAP EPS of $0.13. Despite these solid results, Intel's guidance for Q2 2025 was cautious, forecasting an EPS of $0.00 per share, which disappointed analysts. The company is taking steps to improve operational efficiency and reduce costs. Intel’s Q1 earnings: painful losses highlight tough road ahead Alphabet presents strong start to the year
Alphabet, on the other hand, reported strong Q1 2025 results with a 12% increase in revenue to $90.2 billion. The growth was driven by robust performance across Google Search, YouTube ads, Google subscriptions, and Google Cloud. Alphabet's net income rose by 46%, and EPS increased by 49% to $2.81. The company also announced a 5% increase in its quarterly dividend.
Alphabet delivers powerful Q1 earnings: AI pushes profits higher amid storm clouds Tesla miss estimates - investors optimistic on Musk return
Tesla's reported earnings that fell short of estimates with automotive revenue falling 20% year-over-year as Tesla's sales were hurt amid a backlash to CEO Elon Musk's political involvement. However, Musk said that he will start scaling back his government work next month. Musk also said plans for a cheaper Tesla model and fully self-driving vehicles remain on track. Shares of Tesla were up nearly 6% in after-market trading following the news.
Tesla profits plunge – but Musk’s return recharges investor enthusiasm Next week will the peak of the US earnings season with 4 of the magnificent 7 companies reporting - Microsoft, Meta, Amazon, and Apple – including many other heavy hitters like Visa and Eli Lilly. In Europe we see releases from ING and Banco Santander and car manufacturers Mercedes-Benz and Volkswagen. Key economic data includes the monthly US labor market report.
Published by:
John Matthews