Digest | 12 May 2025
- Edward von der Schmidt
- May 13
- 5 min read
Encouraging dialogue and a trade war reprieve between the US and China bought time but not certainty as global risk markets reacted with cautious optimism. The S&P 500 rallied 3.3% and major equity indices climbed in unison while the dollar firmed and Treasury yields jumped. Geopolitical risks abound and diplomacy concerning Kashmir, Gaza, Iran, and Ukraine remained in flux. Central bankers sought to carefully assess evolving economic context to better inform monetary policy despite outlook risks. US lawmakers prepared budget proposals ahead of committee meetings. April CPI inflation data will be released on Tuesday, when President Trump begins an official tour in the Middle East.