Highlights:
Global markets exhibited a blend of resilience and caution last week, influenced by economic data, trade developments, and sector-specific dynamics. In the United States, the S&P 500 Index achieved its second consecutive week of gains, closing Friday with its ninth straight session in positive territory, marking the longest winning streak since January. This upward momentum was propelled by robust earnings reports from major technology firms, including Microsoft and Meta, which helped offset concerns over President Trump’s renewed tariff policies and a 0.3% contraction in Q1 GDP. European markets mirrored this optimism, with the STOXX Europe 600 Index rising by 2.92% over the week, buoyed by easing trade tensions and positive corporate earnings. In Asia, markets responded positively to signs of renewed U.S.-China trade negotiations. The Hang Seng Index climbed 2.38%, driven by announcements of planned Chinese stimulus measures. Emerging-market currencies, including the Indian rupee, strengthened as the Chinese yuan rallied past the 7.20 level against the U.S. dollar, reflecting increased investor confidence. Commodities experienced notable shifts, with oil prices declining after OPEC+ announced plans to accelerate oil output increases, potentially reintroducing up to 2.2 million barrels per day by November 2025. In the United Kingdom, economic concerns prompted the Bank of England to consider cutting interest rates from the current 4.5%, amid fears of a “growth shock” stemming from global trade tensions and domestic economic challenges. Overall, while global markets demonstrated strength in certain sectors, underlying concerns about trade policies and economic growth continue to influence investor sentiment.
Data Highlights:
In the U.S. the GDP in Q1 2025 contracted by -0.3% which marked the first decline since Q1 2022. This came in below market expectation of 0.3% gain and a sharp decline from 2.4% reported in the previous quarter. The Non-Farm Payroll in the U.S. showed that 177K jobs were added in April 2025 vs the market expectation of 130K.
Week Ahead:
Eurozone Retail Sales YoY, U.S Fed Interest Rate Decision – Wednesday |U. K BoE Interest rate decision – Thursday |Canada Unemployment rate – Friday
