16 May 2025
US stocks traded mixed on Thursday, with the S&P 500 ending up 0.4% and the tech-heavy Nasdaq down 0.2%.
US Treasuries rallied on soft US economic data. 10-year yields fell 11bp to 4.43%.
European stock markets rose on Thursday, as markets digested a string of economic data. The Euro Stoxx 50 rose 0.2%. The German DAX rose 0.7% and French CAC gained 0.2%. In the UK, the FTSE-100 closed 0.6% higher.
European government bonds tracked gains in US Treasuries. 10-year German bund yields fell 8bp to 2.62%, as 10-year French bond yields closed down 9bp at 3.29%. In the UK, 10-year gilt yields fell 5bp to 4.66%.
Asia stock markets trade mixed but mostly lower on Thursday. Japan’s Nikkei 225 fell 1.0%, led by losses in exporter shares amid a stronger yen, while Korea’s Kospi shed 0.7% following recent rallies. Hong Kong’s Hang Seng and China’s Shanghai Composite ended down 0.8% and 0.7%, respectively, with tech earnings and policy outlook in focus. Elsewhere, India’s Sensex gained 1.5% on investor optimism over US-India trade talks.
Crude oil prices fell on Thursday, as investors weighed geopolitical developments. WTI crude for June delivery settled 2.4% lower at USD61.6 a barrel.
In the US, PPI unexpectedly fell in April by -0.5% mom, after staying flat in March, brought down by a fall in air travel demand. Retail sales growth slowed to 0.1% mom in April, from an upwardly revised 1.7% mom increase in March, as the front-loading of spending in Q1 2025 ahead of tariffs faded. Industrial production was unchanged in April versus -0.3% mom in March.
Mexico’s central bank expectedly cut its policy rate by 50bp amid ongoing growth worries and easing inflation concerns.
UK real GDP growth accelerated to 0.7% qoq in Q1, as expected, after a broadly stagnant end to 2024, with the recovery driven by consumer spending.
In the eurozone, real GDP grew by 0.3% qoq in Q1, continuing a gradual recovery path.
In the US, the University of Michigan Sentiment Index is expected to edge up to 53.5 in May, from 52.2 in April.
In Japan, real GDP contracted 0.2% qoq in Q1, dragged down by a decline in net exports and weak consumer spending.
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