📆 Wednesday, May 14
► European markets edged slightly lower as recent rally momentum faded. The Stoxx 600 slipped 0.25%, dragged by weakness in retail and industrials. Burberry surged 13% after announcing job cuts, while Bayer extended Tuesday’s gains post-earnings. Germany's benchmark DAX index (-0.5%) is still hovering near record levels, but is showing signs of fatigue as investors continue to digest global trade trends and reposition their portfolios. CAC_40 (-0.65%) / FTSE 100 (flat). Sentiment has dampened again amid continued uncertainty over tariff easing, especially as there is no new information on a trade agreement with the US and the Eurozone/EU.
► US markets are flat in early trading after five straight days of gains, with Wall Street boosted by chip/AI stocks. The S&P 500 and the Dow Jones currently trades 0.1% lower with the health sector weighing on both; Nasdaq 100 is trading flat. Nvidia (also AMD) led premarket gainers after yesterday's strong performance and revealing a landmark AI chip partnership with Saudi. Despite a 90-day tariff pause and steady inflation, strategists such as Goldman Sachs’ Peter Oppenheimer warned that stretched valuations and fragile growth could still challenge the rally. In addition, the market is expecting further trade deals – the lack of them, will further decrease the current optimism that trade conditions will improve in the near-term. Focus will also be on Nvidia-backed CoreWeave – which will report earnings later today (after the bell) which may have a short-term impact on Nvidia.
► Asian markets closed higher, continuing their gains on trade optimism and USD softness. The MSCI Asia Pacific Index climbed 1.5%, while emerging markets advanced 1.7%. The Chinese yuan held firm following US-South Korea talks on FX alignment. Japanese stocks were little changed (Nikkei -0.15%) but Hong Kong equities (Hang Seng + 2.3%) gained strongly, though there are signs of profit-taking after recent rallies. Regional sentiment remained cautiously positive, with traders watching for US economic signals and Fed commentary.
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