Market Information Thursday 8 May 2025

The US Federal Reserve kept interest rates unchanged at 4.25% to 4.50%. The decision was unanimous. The Fed cited growing uncertainty in the economic outlook and increased risks of inflation and unemployment, partly due to high trade tariffs. Chair Jerome Powell noted the economy and labor market remain solid, but stressed the need to wait for clearer data before adjusting policy. The Fed currently anticipates two rate cuts this year, provided tariffs don’t cause sustained inflation.

Vietnamese exports to the US are surging as companies like Nike and Adidas rush to ship goods before expected tariffs take effect in July. Container traffic between Ho Chi Minh City and Los Angeles has hit record levels, with terminals nearing full capacity. The US is considering a 46% tariff on Vietnamese goods, amid concerns over Chinese products being rerouted through Vietnam. Dutch logistics providers report no major changes yet in shipments to the US, despite the looming tariff threat.

Gold fell after Fed Chair Jerome Powell signalled no urgency to change interest rates, despite economic risks from Trump’s trade policies. The dollar strengthened following his comments, pressuring gold further as it is priced in dollars. Earlier, bullion dropped over 2% on news of renewed U.S.–China trade talks, reducing safe-haven demand. Still, gold remains up 28% for the year, driven by market uncertainty and strong demand from China and central banks.

The 6M Euribor is unchanged at 2.15% compared to previous business day. The 10Y Swap decreased with 7 basis points to 2.43% compared to previous business day.