Financial Market Newsletter

At the Southeast Asia regional summit that commenced on Monday, leaders reached a consensus on the upgraded ASEAN Trade in Goods Agreement (ATIGA), which is expected to be formally signed at the bloc’s annual summit in October.

The financial markets ended last week under significant pressure following an unexpected escalation in global trade tensions. U.S President Donald Trump announced that a 50% tariff on goods from the European Union would take effect starting June 1.

The People’s Bank of China (PBOC) on Monday announced a policy rate cut aimed at stimulating domestic demand.

The European Commission on Monday revised down its economic growth forecast for this year and next, citing the negative impact of U.S tariffs on exports, while projecting a faster-than-expected decline in inflation.

The USD strengthened on Friday (+0,17%) after the latest economic data showed a notable rise in import prices.

U.S inflation cooled more than expected in April, though newly imposed tariffs are anticipated to gradually feed through and drive prices higher in the coming months.

The surprise trade agreement announced yesterday between the United States and China has delivered a rare dose of optimism to the global economy.