Canada GDP, U.S. Core PCE Price Index, Revised UoM Consumer Sentiment

With investors remaining on edge over U.S. President Donald Trump’s tariff agenda, the US dollar returned to losses against most major currencies on Thursday, evidenced by a 0.26% decrease in the dollar index (USDX) on the iFOREX trading platform. Earlier Thursday released data indicated a slowdown in U.S. economic growth during the fourth quarter. This was the final revision of government figures, following two previous estimates.

Elsewhere, Japanese markets experienced the most significant declines, with the Japan 225 down by 1.30% as of 07:40 AM GMT. The move was largely fueled by hotter-than-anticipated inflation data from Tokyo. This unexpectedly high inflation intensified speculation regarding an imminent rate hike by the Bank of Japan. The automobile and technology sectors suffered the heaviest losses, with auto stocks continuing to be impacted by Trump's announcement of 25% tariffs on the industry. The technology sector was further pressured by ongoing declines in chipmakers, driven by increasing worries about oversupply within the artificial intelligence data center industry.

In corporate news, major Asian automakers continue to see significant declines, with Japanese firms Honda, Nissan, and Toyota down by 4.62%, 2.95% and 4.12% respectively on the iFOREX trading platform as of 07:40 AM GMT. South Korea's Hyundai was down 3.53%. The 25% tariff was particularly significant for U.S. automakers as well, who will also face challenges due to their substantial number of factories located outside the U.S., especially in Mexico. This factor contributed to lower trading for General Motors, Stellantis, and Ford on Thursday, with their shares falling by 7.34%, 4.29%, and 3.78% respectively.

Weakened Wall Street sentiment kept all three primary stock indices in the red, while the impact of trade tariffs weighed on tech stocks. This pressure was evident in another pullback of NVIDIA Corporation, Alphabet, and Meta, which are leading the selloff amid ongoing tariff uncertainty.

The cancellation of several data center leases by major investor Microsoft Corporation amplified existing concerns about a supply glut in the AI data center industry, a vital source of chip demand, adding further pressure on tech stocks. Alphabet’s Google is moving to compensate in international markets, while Meta Platforms is filling the gap in the U.S. Microsoft stated that while it might "strategically pace or adjust our infrastructure in some areas, we will continue to grow strongly in all regions." The company also affirmed that its plan to invest $80 billion in AI infrastructure this fiscal year remains on schedule.

Gold prices surged to a record high early Friday, extending their recent gains driven by increased safe-haven demand, reaching $3086 per ounce on the iFOREX trading platform. Gold traders are now keenly awaiting the PCE price index reading later today, as its outcome could influence expectations for future interest rate cuts. Notably, gold has enjoyed significant gains throughout March, supported by declining risk appetite amid market concerns over Trump’s tariffs and the potential for a U.S. recession. Haven demand was further bolstered by geopolitical tensions between Russia and Ukraine, and the collapse of the Israel-Hamas ceasefire.

For Friday, attention will likely turn to the Core PCE Price Index the Fed’s primary gauge of inflation. Some price action could also be seen upon the release of Canada’ s GDP numbers, U.S. monthly Personal Income and Personal Spending, Consumer Sentiment and Inflation Expectations surveys from the University of Michigan and speeches from key FOMC members.