Market Information Wednesday 14 May 2025

The Federal Reserve warned of stagflation risks due to new tariffs, but April inflation data showed cooling price pressures, with CPI at 2.3%—its lowest since early 2021. Core inflation was also lower than expected, suggesting early tariffs haven’t yet fed into prices. Meanwhile, trade deals with the UK and China, and a pause on reciprocal tariffs, are expected to stabilize consumer prices and reduce macroeconomic uncertainty, easing stagflation concerns for now.

A $142 billion U.S.-Saudi arms deal and pledges of up to $1 trillion in Gulf investments mark a major shift toward economic diplomacy in the Middle East. The surprise lifting of long-standing sanctions on Syria is expected to unlock large-scale reconstruction financing from the Gulf region and international sources. AI investments, including a major Nvidia chip deal, highlight the Gulf’s digital ambitions and signal shifting capital flows that may redefine global economic alignments.

U.S. stock futures held steady overnight following strong gains earlier in the week, as easing U.S.-China trade tensions and a 90-day tariff reduction lifted investor sentiment. The S&P 500 turned positive for the year, led by tech stocks, with Nvidia surging over 5% on a major AI chip export deal to Saudi Arabia. The rally signals broad risk appetite across equities, bolstered by a string of gains in key names like Apple, Amazon, and Goldman Sachs, despite lingering structural issues in global trade relations.

The 6M Euribor increased with 1 basis point to 2.12% compared to previous business day. The 10Y Swap increased with 3 basis points to 2.62% 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.