1. Market Overview
This week was a rollercoaster for global markets, with extreme volatility early on driven by the deepening trade war and growing concerns over economic stability. However, as the week progressed, sentiment began to shift, and by the end of the week, markets found solid ground on the back of several encouraging developments. The biggest relief came over the weekend when President Trump announced that smartphones, computers, and chips will be exempt from the new round of tariffs🤔
The Federal Reserve signaled it is ready to step in with support if financial conditions continue to deteriorate, helping to ease some of the immediate pressure on both equities and bonds. On the inflation front, the latest data showed price growth is cooling sharply — a welcome sign for both investors and policymakers, as it suggests the Fed’s tightening cycle may be nearing its end. At the same time, global liquidity remains strong, with global M2 money supply hitting a new all-time high, providing a major tailwind for risk assets📈
Finally, the news that the U.S. is actively negotiating new trade deals helped calm fears of an uncontrollable escalation in the trade war. All in all, what began as a panic-driven week ended with markets regaining stability and several positive catalysts lining up for the weeks ahead👀