{"id":2340,"date":"2025-05-21T01:22:48","date_gmt":"2025-05-21T01:22:48","guid":{"rendered":"https:\/\/decodefunds.com.au\/?p=2340"},"modified":"2026-04-04T09:59:51","modified_gmt":"2026-04-04T09:59:51","slug":"trivesta-weekly-markets-recap-highlight-and-insights-on-second-week-of-may","status":"publish","type":"post","link":"https:\/\/trivesta.com.au\/zh\/general-investing\/trivesta-weekly-markets-recap-highlight-and-insights-on-second-week-of-may","title":{"rendered":"Trivesta Weekly Markets Recap: Highlight and Insights on second week of May"},"content":{"rendered":"

United States and China strike a 90-day tariff cease-fire<\/h4>\n\n\n\n

United States<\/strong><\/h2>\n\n\n\n

Equities surge on truce-driven optimism<\/strong><\/h3>\n\n\n\n

U.S. share prices powered higher as investors cheered a weekend breakthrough in Switzerland that froze most of the fresh duties between Washington and Beijing for three months. The tech-heavy Nasdaq Composite outperformed with a 7.15 %<\/strong> jump, while the S&P 500 and Dow Jones Industrial Average rose 5.27 %<\/strong> and 3.41 %<\/strong>, respectively. Mid-caps and small-caps chalked up a sixth consecutive weekly advance.<\/p>\n\n\n\n

The deal slices U.S. levies on Chinese goods to 30 %<\/strong> from 145 %<\/strong> and trims China\u2019s tariffs on U.S. imports to 10 %<\/strong> from 125 %<\/strong>. Additional tailwinds included reports that Saudi Arabia will buy large volumes of U.S. AI chips, helping most benchmarks vault back above their April 2 levels by Friday\u2019s close.<\/p>\n\n\n\n

Inflation readings ease<\/strong><\/h3>\n\n\n\n

Momentum carried into Tuesday after the Bureau of Labor Statistics showed April consumer prices rising 2.3 % y\/y<\/strong>, a hair below forecasts and the slowest pace since early 2021. Month-on-month, headline and core CPI both increased 0.2 %<\/strong>. Wholesale prices surprised even more: April PPI fell 0.5 %<\/strong> versus an expected +0.2 %<\/strong>, reflecting thinner margins as firms absorb tariff costs.<\/p>\n\n\n\n

Consumers tap the brakes<\/strong><\/h3>\n\n\n\n

Thursday\u2019s Census Bureau report revealed retail sales up just 0.1 %<\/strong> in April, cooling sharply from March\u2019s 1.7 %<\/strong> pop. Big-ticket categories such as autos, sporting goods and apparel retrenched, hinting that shoppers front-loaded purchases ahead of tariff hikes. On Friday, the University of Michigan\u2019s sentiment gauge slipped to 50.8<\/strong>\u2014a fifth straight dip\u2014with ~75 %<\/strong> of respondents spontaneously citing tariffs. One-year inflation expectations jumped to 7.3 %<\/strong>.<\/p>\n\n\n\n

Credit markets mixed<\/strong><\/h3>\n\n\n\n

Treasury yields drifted higher, leaving government bonds in the red, while munis outperformed despite heavy supply. Investment-grade corporates eked out gains in the risk-on mood, and high-yield paper benefited from lively equity markets and well-received new issues.<\/p>\n\n\n\n

Index<\/strong><\/td>Friday Close<\/strong><\/td>Weekly Move<\/strong><\/td>YTD %<\/strong><\/td><\/tr><\/thead>
DJIA<\/td>42 654.74<\/td>+1 405.36<\/td>+0.26 %<\/td><\/tr>
S&P 500<\/td>5 958.38<\/td>+298.47<\/td>+1.30 %<\/td><\/tr>
Nasdaq Comp.<\/td>19 211.10<\/td>+1 282.19<\/td>\u22120.52 %<\/td><\/tr>
S&P MidCap 400<\/td>3 088.22<\/td>+141.95<\/td>\u22121.05 %<\/td><\/tr>
Russell 2000<\/td>2 113.25<\/td>+90.18<\/td>\u22125.24 %<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

(Data: Reuters via Yahoo!\u202fFinance and Bloomberg)<\/p>\n\n\n\n

Europe<\/h2>\n\n\n\n

The STOXX Europe 600<\/strong> advanced 2.10 %<\/strong> as the tariff d\u00e9tente buoyed risk appetite. Germany\u2019s DAX added 1.14 %<\/strong>, France\u2019s CAC 40 1.85 %<\/strong>, Italy\u2019s FTSE MIB 3.27 %<\/strong>, and the UK\u2019s FTSE 100 1.52 %<\/strong>.<\/p>\n\n\n\n

UK: growth accelerates, labour slackens<\/strong><\/h2>\n\n\n\n

Q1 GDP expanded 0.7 % q\/q<\/strong>, the best in a year, driven by services, capex and exports. Yet job-market data showed unemployment ticking up to 4.5 %<\/strong> and payroll employment posting the biggest slide in 12 months. Core private-sector pay grew 5.6 % y\/y<\/strong>, the slowest since November 2024.<\/p>\n\n\n\n

BoE Chief Economist Huw Pill cautioned that inflation might linger, while dovish-voting colleagues Lombardelli and Greene warned against premature rate cuts.<\/p>\n\n\n\n

Eurozone: industrial rebound<\/strong><\/h2>\n\n\n\n

March industrial production jumped 2.6 % m\/m<\/strong>, led by capital and durable consumer goods. Germany printed a robust +3.1 %<\/strong>. The trade surplus ballooned to \u20ac36.8 bn<\/strong>, and employment rose 0.3 % q\/q<\/strong>.<\/p>\n\n\n\n

Japan<\/strong><\/h2>\n\n\n\n

The Nikkei 225<\/strong> edged up 0.67 %<\/strong> and TOPIX<\/strong> 0.25 %<\/strong> as the U.S.\u2013China thaw lifted sentiment. The 10-year JGB yield climbed to 1.46 %<\/strong>. After an initial dip, the yen firmed into the high-JPY 145 zone amid a broader Asian-FX rally.<\/p>\n\n\n\n

Q1 GDP contracted an annualised 0.7 % q\/q<\/strong>\u2014the first drop in a year\u2014owing to soft consumer spending and trade-war worries. The Bank of Japan trimmed growth and inflation forecasts but reiterated that further hikes hinge on data.<\/p>\n\n\n\n

China & Hong Kong<\/strong><\/h2>\n\n\n\n

The CSI 300<\/strong> rose 1.12 %<\/strong> and the Shanghai Composite<\/strong> 0.76 %<\/strong>, while Hong Kong\u2019s Hang Seng<\/strong> gained 2.09 %<\/strong>. Markets jumped on the tariff news\u2014Beijing secured almost all its key demands\u2014then faded as hopes for a large domestic stimulus diminished. Earlier in May, the PBoC had cut the reserve-requirement ratio and trimmed the seven-day reverse-repo rate to 1.4 %<\/strong>, but expectations for fresh easing are now tempered by the trade truce.
<\/p>\n\n\n\n

Other Key Markets<\/strong><\/h2>\n\n\n\n

Hungary<\/strong><\/h3>\n\n\n\n

April CPI slowed to 4.2 % y\/y<\/strong> but exceeded forecasts. T. Rowe Price\u2019s Ivan Morozov sees underlying pressures persisting and doubts the central bank will cut rates in 2025.<\/p>\n\n\n\n

Brazil<\/strong><\/h3>\n\n\n\n

April inflation printed 0.43 % m\/m<\/strong> (5.6 % y\/y<\/strong>). Softer gasoline and airfare costs masked sticky core prices, suggesting policy tightening since September has yet to deliver core disinflation.<\/p>","protected":false},"excerpt":{"rendered":"

United States and China strike a 90-day tariff cease-fire United States Equities surge on truce-driven optimism U.S. share prices powered higher as investors cheered a weekend breakthrough in Switzerland that froze most of the fresh duties between Washington and Beijing for three months. The tech-heavy Nasdaq Composite outperformed with a 7.15 % jump, while the […]<\/p>\n","protected":false},"author":11,"featured_media":2342,"comment_status":"open","ping_status":"open","sticky":false,"template":"template-parts\/single-post-ai.php","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[37,18,19],"class_list":["post-2340","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-investing","tag-china","tag-equities","tag-us"],"acf":[],"_links":{"self":[{"href":"https:\/\/trivesta.com.au\/zh\/wp-json\/wp\/v2\/posts\/2340","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/trivesta.com.au\/zh\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/trivesta.com.au\/zh\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/trivesta.com.au\/zh\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/trivesta.com.au\/zh\/wp-json\/wp\/v2\/comments?post=2340"}],"version-history":[{"count":1,"href":"https:\/\/trivesta.com.au\/zh\/wp-json\/wp\/v2\/posts\/2340\/revisions"}],"predecessor-version":[{"id":3736,"href":"https:\/\/trivesta.com.au\/zh\/wp-json\/wp\/v2\/posts\/2340\/revisions\/3736"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/trivesta.com.au\/zh\/wp-json\/wp\/v2\/media\/2342"}],"wp:attachment":[{"href":"https:\/\/trivesta.com.au\/zh\/wp-json\/wp\/v2\/media?parent=2340"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trivesta.com.au\/zh\/wp-json\/wp\/v2\/categories?post=2340"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trivesta.com.au\/zh\/wp-json\/wp\/v2\/tags?post=2340"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}