Market Update on April 17, 2025: Stocks and U.S. Dollar Slightly Fluctuate as U.S.-Japan Trade Talks Draw Attention

US-Japan Trade Talks: Impact on Stocks, Currency, and Gold

Amid global economic and geopolitical volatility, trade negotiations between the United States and Japan have drawn significant attention from investors. These talks are considered a major market-moving event, directly impacting stock markets, currency exchange rates, and gold prices.

1. Background and Motivation

The U.S. and Japan are major trade partners, with Japan being a key exporter of chips and high-tech components to the U.S. Meanwhile, the U.S. is considering tariffs on imported minerals and parts, raising fears of escalating trade tensions.

2. Impact on Stock Markets

The Nikkei 225 rose 0.7% after the U.S. claimed "positive progress" in the trade talks.

Stocks related to semiconductors, automobiles, and technology saw gains.

3. USD and Yen: Cautious Fluctuations

The yen initially strengthened but later weakened as both governments denied discussing exchange rates.

The U.S. dollar remained flat amid pressure from interest rate and tariff uncertainties.

4. Gold Prices and Safe-Haven Demand

Spot gold surpassed $3,300/ounce as safe-haven demand surged.

Investors turned to gold amid volatility in stocks and currency markets.

5. Forecast and Future Outlook

Experts warn that the negotiations may last for several months.

The Fed is likely to maintain high rates while recession risks linger.

6. Conclusion and Recommendations

Amid unresolved trade negotiations, investors should be cautious and consider shifting part of their portfolios into safe-haven assets like gold.

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