Markets rallied on Thursday as investors responded positively to a newly announced U.S.-U.K. trade agreement and signs of easing global trade tensions. U.S. equities gained sharply, with tech and industrials leading. Treasury yields climbed, while the dollar strengthened amid reduced demand for safe-haven assets. In Europe, stocks were lifted by strong earnings and monetary policy action. The Bank of England unexpectedly cut rates, and China took stimulus steps ahead of key trade talks.
🇺🇸 United States
Markets & Macro:
- Dow Jones rose by 1.1%, led by Boeing and Disney.
- S&P 500 gained 0.6%, Nasdaq added 1.0%.
- Treasury yields jumped: 10-year at 4.388%, 30-year at 4.853%.
- U.S. dollar strengthened across the board.
Key Developments:
- President Trump announced a trade agreement with the U.K., reducing tariffs and improving market sentiment.
🇬🇧 United Kingdom
Markets & Macro:
- FTSE 100 up 0.3%, FTSE 250 gained 0.9%.
- GBP rallied to a near 38-month high vs USD.
- 10-year gilt yields rose to 4.552%.
Key Developments:
- The Bank of England cut interest rates to 4.25%, surprising markets with a split vote among members.
🇪🇺 Eurozone
Markets & Macro:
- STOXX Europe 600 up 0.5%, DAX up 1%, CAC 40 up 0.8%.
- Eurozone bond yields edged higher.
- The euro weakened to a one-month low near 1.1210.
Key Developments:
- The Sentix investor confidence index improved to -8.1 in May, showing signs of stabilizing sentiment.
🇨🇳 China
Markets & Macro:
- Shanghai Composite closed higher at 3,352.
- USD/CNY at 7.2348, indicating slight yuan weakness.
Key Developments:
- PBOC cut its 7-day reverse repo rate by 10bps to 1.40% in a move to support liquidity ahead of trade talks.
🇯🇵 Japan
Markets & Macro:
- Nikkei 225 posted gains on weaker yen and global optimism.
- USD/JPY rose to 146.175, marking a one-month low for the yen.
Key Developments:
- The BoJ left interest rates unchanged at 0.5%, citing global economic risk factors and U.S. trade policy concerns.
🌍 EMEA (Europe, Middle East, Africa)
Markets & Macro:
- Gulf markets traded mixed, driven by earnings season and cautious sentiment ahead of geopolitical and trade developments.
🛢️ Commodities & 🪙 Cryptocurrencies
Commodities:
- Brent crude oil climbed toward $80 per barrel on global trade optimism.
- Gold held steady near key resistance levels amid balanced risk appetite.
Cryptocurrencies:
- Bitcoin rebounded sharply, supported by its appeal as a hedge against macroeconomic uncertainty.
- Ethereum and Solana followed suit with notable gains.
Top Performers:
- Bitcoin: +4.8%
- Brent Crude: +2.1%
- Nikkei 225: +1.3%
- GBP/USD: +0.6%
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