| | | | | | | April 01, 2025 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Options Pros Are Missing a Key Risk from Trump Tariff Escalation
Bernard Goyder - Bloomberg
Options traders are underpricing risks in materials stocks, allowing bearish investors to cheaply protect against losses wrought by President Donald Trump's tariff agenda, according to a Barclays Plc strategist. Expected volatility in the materials sector - compared to the S&P 500 Index - is around the lowest levels in the last two decades, making it relatively inexpensive to buy downside protection, Stefano Pascale, an equity derivatives strategist at Barclays told Bloomberg News in an interview. Price swings in the group have been relatively subdued compared to the broader US market, and especially when weighed against technology names.
/jlne.ws/3XFDKPK
Stock-Concentration Fear Spurs Wall Street's Latest ETF Solution
Vildana Hajric - Bloomberg
It's the latest portfolio hedge for investors fretting over the stock market's unprecedented dependence on a handful of technological behemoths: An S&P 500 ETF that weights the top companies according to the time-honored historic norm. That's the thinking underlying the Tema S&P 500 Historical Weight ETF, which launches Tuesday under the ticker DSPY. At its debut, the weighting of the biggest 10 members will account for a combined 22%, in line with the benchmark's average concentration level over the past 35 years. That's significantly less than their 34% representation in the market cap-weighted S&P 500 gauge today - even after this year's multitrillion-dollar wipeout across Big Tech shares amid the Trump administration's brewing trade war.
/jlne.ws/4ceNbf2
Trump's Tariffs Will Take Effect Immediately, White House Says. Brace for Market Volatility.
Anita Hamilton and Brian Swint - Barron's
President Donald Trump has called April 2 "Liberation Day" because that is when he will announce tariffs aimed at bolstering U.S. businesses and eliminating huge trade imbalances with other countries.
/jlne.ws/3FQmilz
Wall Street closes out bruising quarter as outlook remains murky
Saqib Iqbal Ahmed - Reruters
As Wall Street draws the curtain on a tumultuous quarter in which stocks logged a record high before tumbling into correction, investors are faced with a mountain of policy uncertainty that clouds the outlook for coming quarters.
The S&P 500 Index (.SPX), opens new tab finished the quarter down 4.6%, its worst first three months of a year since the first quarter of 2022.
/jlne.ws/4461eRS
Tesla and Elon Musk are in the eye of a storm. Will first-quarter deliveries provide some relief?; EV giant Tesla reports first-quarter deliveries Wednesday amid a string of protests against CEO Musk and a declining stock price
James Rogers - MarketWatch
Tesla Inc. reports first-quarter delivery numbers Wednesday, with the electric-vehicle maker in the center of a storm of protests against its polarizing chief executive, Elon Musk.Tesla has had a rough start to 2025, marked by demand concerns, intensifying competition and a public backlash against the company and Musk's high-profile position in the Trump administration.
/jlne.ws/3E2JGeW
| | | | | | Exchanges | | | Cboe Clear Europe Clears First Securities Financing Transactions
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today announces that Cboe Clear Europe has commenced clearing of European Securities Financing Transactions (SFTs). Natixis Corporate & Investment Banking acted as a Principal Lender against JP Morgan as a Borrower, as part of the first trades cleared through the new service. Cboe Clear Europe has leveraged its position as the largest pan-European clearing house for cash equities to bring this first-of-its-kind service to market, which represents a key step in the company's strategy to become a leading multi-asset class clearing house in the region. This service transforms the bilateral process for SFTs in European equities and ETFs into a centrally cleared model, helping to increase the capital efficiencies associated with activities such as securities lending and supporting the growth of this key market. In addition to the firms that have already used the service, a number of others - including banks, asset managers, broker-dealers, and Agent Lenders - have completed final testing in preparation for clearing.
/jlne.ws/3YcreHw
Early Birds and Night Owls: How Extended Trading Hours are Reshaping U.S. Equities Markets
Cboe
As access expands and global markets have become increasingly interconnected, U.S. exchanges have responded to domestic and international demand by offering extended trading hours. Cboe introduced early hours trading on its EDGX Equities Exchange (EDGXÃ ) from 4 a.m. - 7 a.m. ET in March 2021, and EDGX is now the second largest early hours trading exchange.
/jlne.ws/4iRiD5m
NYSE's Texas platform debuts with Donald Trump's social media stock; Shares of the president's company fell on the state's market amid a broad sell-off fuelled by his trade agenda
George Steer - Financial Times
Donald Trump's social media company became the first group to list on the New York Stock Exchange's Texas platform on Monday, months after the president lashed out at Nasdaq for temporarily halting trading of the shares. The NYSE earlier this year rebranded its Chicago operation, which dates back 143 years, as a "Dallas exchange" in an attempt to capitalise on the state's burgeoning reputation as a "pro-business" state. However, no employees have made the move to Texas and the servers powering the electronic-only market remain in New Jersey.
/jlne.ws/3FSmz7t
Archax Buys FINRA-Regulated Broker Dealer to Offer Tokenized Assets in the U.S.
Krisztian Sandor - CoinDesk
Archax, a U.K.-regulated crypto exchange and custodian focusing on tokenized assets, has acquired a U.S. broker-dealer in an effort to enter the booming institutional market in the country after recent positive changes on the regulatory environment. Globacap Private Markets Inc, a broker-dealer and alternative trading system (ATS) regulated by FINRA and the Securities and Exchanges Commission (SEC), is being bought by Archax and being renamed to Archax Markets US.
/jlne.ws/4hUi49y
Producer sentiment slips due to rising policy uncertainty
CME Group
Farmer sentiment declined in March as concerns over agricultural trade and farm policy weighed on producers' outlook for the future. The Purdue University/CME Group Ag Economy Barometer fell 12 points to a reading of 140, down from 152 a month earlier. Contributing to the weakened sentiment in March was a 15-point drop in the Index of Future Expectations to 144 and the Current Conditions Index falling 5 points to 132. The drop in sentiment was influenced by falling crop prices since mid-February, along with increasing uncertainty surrounding agricultural trade and farm policy. Despite the decline, producers remained more optimistic about future conditions than the present, with the Future Expectations Index remaining higher than the Current Conditions Index by 12 points. This month's survey was conducted between March 10-14.
/jlne.ws/4caz6z0
| | | | | | Strategy | | | How hedge funds have positioned for Trump's 'Liberation Day'
Nell Mackenzie - Reuters
Hedge funds have scaled back risky bets and sought safety, data from Goldman Sachs (GS.N), opens new tab shows, ahead of this week's widely anticipated announcement by U.S. President Donald Trump on reciprocal tariffs that has fuelled trade war fears.
Trump has for weeks flagged April 2 as a "Liberation Day" delivery date for his most ambitious actions yet to upend more than half a century of global trade norms, which saw barriers to international commerce fall, but in ways the president believes disadvantaged American goods and workers.
/jlne.ws/4iRi2AE
Here's how big a move traders are eyeing for the stock market on tariff 'liberation day'
Filip De Mott - Business Insider
According to options data tracked by equity derivative strategists at JPMorgan, the S&P 500 is projected to move as much as 1.6% in response to the tariff announcement. The Nasdaq 100 and Rusell 2000 are set to move 1.8% and 2.1%, respectively.
Though a downside move of this size would bring the S&P 500 back to 2025 lows, there's also room to doubt whether such a swing will occur.
/jlne.ws/4cfoa3m
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