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.

The week ending May 9, 2025, presented a complex tapestry for global financial markets. Investor sentiment oscillated in response to a confluence of factors, including ongoing international trade negotiations, pivotal central bank policy decisions, and escalating geopolitical tensions in certain regions. While some markets found support in stimulus measures or positive earnings, others grappled with uncertainty and risk aversion. This report will dissect the performance and key drivers across major economic zones.