Real Vision: Finance & Investing US-China Tariff Cut and Global Market Surge: PALvatar Market Recap, May 12 2025
May 12, 2025
Huge market enthusiasm follows a significant U.S.-China tariff cut, triggering boosts in equities, oil, and the dollar. The tech sector shines on Wall Street with impressive gains. Positive news extends with a ceasefire between India and Pakistan fueling optimism. Additionally, Japan reports a current account surplus, while loan growth faces a slowdown. Keep an eye on upcoming U.S. inflation data, which could further shape market trends.
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Commodity and Currency Movements
- Oil prices jumped 3% and the US dollar strengthened by about 1%.
- Meanwhile, gold prices dropped approximately 3% in spot markets.
Ceasefire Boosts Asian Markets
- A ceasefire between India and Pakistan contributed to positive market momentum.
- Asian equities, especially Hang Seng and Shenzhen Composite, surged following these developments.
Major US-China Tariff Cut
- The US and China cut tariffs by 115 percentage points, a significant de-escalation in the trade war.
- This push boosted global markets, oil, and the US dollar significantly.