Author name: Swapnil Bhatnagar

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.

The week ending May 16, 2025, was largely characterised by a significant uplift in global investor sentiment, primarily ignited by a landmark 90-day agreement between the United States and China to pause most of their punitive tariffs. This “tariff truce” acted as a powerful catalyst, propelling many global equity indices to notable weekly gains. The US agreed to reduce tariffs on Chinese imports from 145% to 30%, while China committed to lowering tariffs on US goods from 125% to 10% for the 90-day period. This development eased immediate concerns about escalating trade tensions that had previously cast a shadow over the global economic outlook.