May 2025

The week ending May 30, 2025, presented a complex and often turbulent landscape for global stock markets. The dominant theme was the ongoing “tariff saga” 1 involving the United States and China, which cast a long shadow over investor sentiment worldwide. Market participants found themselves reacting to a rapid succession of legal developments concerning US tariffs, creating an undercurrent of caution that rippled across international exchanges. While some markets, notably in the United States, demonstrated resilience and posted gains, others, particularly across Asia, faced significant headwinds. Adding to the intricate picture were key economic data releases, including crucial inflation reports and GDP figures, alongside central bank commentary and actions, all of which played pivotal roles in shaping the week’s market performance.

The trading week ending May 23, 2025, was marked by a significant uptick in investor anxiety and notably divergent performances across global stock markets. A primary catalyst for this widespread unease was the sharp revival of trade war concerns, predominantly ignited by new tariff threats emanating from the U.S. administration.This development cast a shadow over markets that had, in previous weeks, found some solace in what appeared to be a softening of trade rhetoric.