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The Federal Reserve held interest rates steady at 4.25%–4.5% for a fourth consecutive meeting, maintaining a cautious stance amid persistent economic uncertainty. Policymaker projections revealed a growing divide, with half expecting no rate cuts this year and the other half still pencilling in two. Chair Jerome Powell reiterated that while the U.S. economy remains resilient, […]

The US May consumerprice data surprised on the downside. Headline CPI rose 0.1 % m/m (consensus: 0.3 %) and 2.4 % y/y, while core CPI held steady at 2.8 % y/y. The first full month of new import tariffs had only a marginal impact on coregoods prices. Consequently, market expectations for Federal Reserve policy were little changed.  Brent crude rallied on Friday, settling […]

Eurozone GDP grew by 0.6% quarter-on-quarter in Q1, double the initial estimate and the fastest pace since Q3 2022. According to Eurostat, the upward revision was led by stronger growth in Ireland and Germany. Inflation eased in May, with headline CPI falling to 1.9% from 2.2% and core inflation moderating to 2.3%, indicating softer underlying […]

The Euro Stoxx 50 ended the week 0.76% higher, after U.S. President Trump said he would give the European Union more time to negotiate a trade deal before 50% tariffs take effect. In the UK, services sector confidence fell to a two and a half year low in the three months to May, as a new […]

The Moody’s downgrade stripped the U.S. of its last triple-A rating, citing a lack of progress in curbing deficits and rising interest costs. While not unexpected, it reignited focus on the growing fiscal burden, especially with legislation on the table that could add nearly $3 trillion to the deficit over the next decade. The bill […]

U.S. retail sales growth slowed sharply in April, with headline sales up just 0.1% after a 1.7% surge in March. The fading boost from front-loaded auto purchases ahead of tariffs weighed on momentum, while broader consumer spending softened amid rising economic uncertainty. Core retail sales, which align closely with the consumption component of GDP, fell […]

High-level trade negotiations between the U.S. and China are set to resume in Switzerland this weekend. U.S. Treasury Secretary Bessent and Trade Representative Greer will meet with Chinese Vice Premier He Lifeng in a bid to de-escalate tensions. Meanwhile, new customs data showed Chinese exports to the U.S. plummeted 21% year-over-year in April, falling to […]

Eurozone economic growth picked up to 0.4% in Q1, doubling the prior quarter’s pace and beating the 0.2% consensus forecast from FactSet. In other news, Bloomberg reported that the European Union plans to ease trade barriers with the U.S., boost investment, cooperate on strategic issues, and increase purchases of U.S. goods like LNG and tech. […]

Safe-haven assets such as gold attracted strong inflows, with bullion prices surging to an intra-week high above $3,500 per ounce, reflecting ongoing concerns around geopolitics and inflation. While there were glimmers of progress on Ukraine and renewed nuclear talks with Iran, trade tensions persisted, and political uncertainty within the U.S. continued to grow. Against this […]

On the economic front, U.S. retail sales rose 1.4% in March, marking the biggest increase in over two years. The surge was largely driven by a 5.3% jump in vehicle and auto parts sales, as consumers rushed to buy ahead of a proposed 25% tariff on imported automobiles. Gains were also seen in building materials, […]