Macroeconomic/ geopolitical developments
- Global equities rallied as easing U.S.-China trade tensions and resilient economic data boosted investor confidence, driving strong gains across U.S., European, and Asian markets.
- A 90-day pause in the US-China trade war, marked by steep tariff reductions and renewed negotiations, has lifted markets and investor sentiment, though lasting resolution remains uncertain.
- April’s inflation data came in below expectations, with both consumer and producer prices easing, retail sales slowing, and markets buoyed by signs that tariff-related pressures have yet to significantly impact overall price levels.
- In a week marked by limited U.S. data and central bank caution, Thursday’s global Flash PMI readings take center stage as the most critical indicator of economic momentum amid ongoing trade uncertainty.
Global financial market developments
- US and global equity average posted solid weekly gains.
- US and European bonds were little changed on the week.
- The US Dollar Index also marked time in consolidation mode.
- Gold futures were also little changed on the week.
- Oil futures prices were also little changed for the week.
Key this week
Central Bank Watch: The main central bank activities this week are the People’s Bank of China Interest Rate Decision and Monetary Policy Statement on Tuesday and the Reserve Bank of Australia Rate Statement and Monetary Policy Statement also on Tuesday.
Macro Data Watch: The main macro data releases this week are the Global Flash PMI on Thursday. Some other releases of note are the EU, Canadian, UK and Japanese CPI data releasing throughout the week and Chinese, UK and Canadian Retail Sales also releasing throughout the week.
Earnings Watch: US Q2 earnings are quiet, with Home Depot releasing their earnings on Tuesday and Intuit on Thursday.
| Date | Major Macro Data |
| 05/19/2025 | Chinese Retail Sales and Industrial Production; EU CPI; |
| 05/20/2025 | PBoC Interest Rate Decision and Monetary Policy Statement; RBA Rate Statement and Monetary Policy Statement; German PPI; Canadian CPI |
| 05/21/2025 | Japanese Trade Report; UK CPI and RPI |
| 05/22/2025 | Global Flash PMI; EU Consumer Confidence |
| 05/23/2025 | UK Consumer Confidence and Retail Sales; Japanese CPI; German GDP; Canadian Retail Sales |
