Market Information Tuesday 13 May 2025

A 90-day pause on the steepest U.S.-China tariffs is sparking a surge in shipments from China, as importers rush to frontload inventory before a potential August tariff hike. Despite the temporary reprieve, many businesses face rising supply chain costs, limited shipping capacity, and unpredictable policy shifts that complicate planning and pricing. Ocean freight rates are expected to spike due to high demand and constrained vessel availability. Retailers and critical industries are scrambling to replenish inventories, fueling a peak shipping season into Q3. Long-term uncertainty continues to weigh heavily on business confidence.

U.S. stocks surged Monday after the U.S. and China agreed to temporarily reduce tariffs, easing fears of a trade war–induced recession. The Dow jumped 2.81%, the S&P 500 gained 3.26%, and the Nasdaq soared 4.35%, led by tech giants like Tesla, Apple, and Nvidia. Treasury Secretary Scott Bessent called the talks “very productive,” though he emphasized that the deal is only a pause, not a resolution. Optimism around trade progress lifted Treasury yields and oil prices, while defensive stocks lagged. Markets welcomed the surprise tariff relief, but long-term uncertainty remains.

Asia-Pacific markets traded mixed on Tuesday, reacting to Wall Street’s sharp rally following the surprise U.S.-China trade agreement, which included a 90-day tariff pause and a substantial 115-point cut in reciprocal duties. Nomura upgraded Chinese equities to “tactical overweight,” citing the larger-than-expected tariff reduction as a major boost to global risk sentiment. However, Hong Kong stocks reversed sharply, led by declines in tech. Japan’s Nikkei rose, while India and South Korea posted modest moves. The Bank of Japan signaled caution, suggesting a possible rate pause if U.S. economic momentum weakens.

The 6M Euribor decreased with 2 basis points to 2.11% compared to previous business day. The 10Y Swap increased with 8 basis points to 2.59% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.