Trade Tension, Big Tech, Silver and Fed in focus

• Global markets rally with tech leading gains
• Trump threatens Canada and South Korea
• Fed not expected raise rates on Wednesday
• Gold and Silver crash after hitting all-time highs
• Big tech earnings could propel US500 to fresh records

Asian stocks rose for a fourth consecutive day, with tech shares leading the rally.

In Europe, equities flashed green as India and the European Union reached a fresh trade deal.

Nevertheless, trade uncertainty remains a theme amid Trump’s tariff threats on Canada and South Korea. These developments may cap risk sentiment while supporting appetite for safe-haven assets.

Currency markets are buzzing with activity as the dollar attempts to nurse wounds from last Friday’s brutal sell-off. A rate check by the New York Federal Reserve on the USDJPY sparked fears of potential intervention, with the major currency pair tumbling over 500 pips from last Friday.

Dollar weakness may persist as a theme, particularly if concerns escalate over a potential partial government shutdown on Friday. Other key risk events that may influence the dollar may be the Fed rate decision and Trump’s pick of a new Fed head.

No change is expected in U.S. interest rates on Wednesday, but any fresh insight offered on future policy moves may move equity and commodity markets.

Speaking of commodities, silver surged as much as 14$ on Monday – hitting records, before collapsing like a house of cards and erasing all gains. Although prices later rebounded toward $110, it highlights how fragile the rally has become. Nevertheless, silver is still up almost 60% this month, with gold lagging at rising by 18%.

On the earnings front, four of the so-called “Magnificent” 7 tech giants with a combined market cap of over $10 trillion are set to publish their results.

Considering how Meta, Tesla, Microsoft and Apple make up roughly 16% of the S&P 500 weight, the results could translate to significant prices swings. A round of solid earnings may push the S&P500 to the milestone 7,000 and beyond.