Asia Colour - 14 May 25
1/ Markets rebounded sharply overnight following the announcement of a landmark $600B trade deal between the US and Saudi Arabia. The agreement includes a rollback in tariffs and has reignited global risk sentiment.
2/ Equities surged on the news. The S&P 500 has erased last month’s 17% drawdown and is now flat on the year — a stark reversal that highlights renewed investor confidence and appetite for risk.
3/ US CPI came in softer than expected, reinforcing hopes for rate cuts. But the Fed remains cautious. Officials reiterated their data-dependent stance, citing lingering uncertainty from the new trade dynamics.
4/ Markets are pricing in the first Fed cut by July. However, we view September as more likely, with expectations for two cuts in 2025 — down from four just a month ago — reflecting the Fed’s more measured approach.
5/ Crypto is leading the rebound. $BTC is nearing ATHs, $ETH is catching up, and with Coinbase set to join the S&P 500 on May 19, digital assets may see a fresh wave of inflows.
Read more: www.qcpgroup.com/insights/asia...
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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