Real Vision: Finance & Investing US Credit Downgrade, China’s Mixed Data, and UK’s Brexit Reset: PALvatar Market Recap, May 19 2025
May 19, 2025
The discussion kicks off with the impact of the U.S. credit downgrade by Moody's, driving 30-year Treasury yields above 5%. Meanwhile, China reveals industrial output that surpasses expectations, but retail sales suggest lingering consumer woes. In the UK, there's buzz around a potential Brexit reset as Prime Minister Keir Starmer plans to strengthen ties with the EU. This vibrant market recap offers insightful analysis of key global economic shifts and their implications.
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US Credit Rating Downgrade Impact
- Moody's downgraded the US credit rating from AAA to AA1 due to rising debt and deficits forecasted to hit 130% of GDP by 2035.
- This caused a rise in 30-year Treasury yields above 5% and a weaker performance in US equity futures.
China's Mixed Economic Data
- China's industrial output growth exceeded expectations at 6.1%, but retail sales growth lagged at 5.1%, showing consumer stress.
- This mixed data from China, alongside US news, led to declines in Asia-Pacific markets.
UK Brexit Reset Plans
- UK Prime Minister Keir Starmer plans a Brexit reset deal to strengthen UK-EU market ties.
- This political move aims to rekindle economic relations post-Brexit.