Market developments
Equities: Global stock markets rallied this week, driven by easing U.S.-China trade tensions following a 90- day tariff truce, with the S&P 500 erasing its 2025 losses and rising for five straight sessions. U.S. equity funds saw their first inflows in five weeks, while European and Asian markets also gained, though sentiment remained cautious due to lingering tariff uncertainties. Strong economic data and upbeat earnings, particularly in tech, supported the rally, but analysts warn that valuations may be optimistic given unresolved trade risks.
Fixed Income: Bond markets experienced a rally in the middle of the week as expectations for U.S. monetary policy easing grew, spurred by softer-than-expected inflation data and cooling trade tensions. Treasury yields were relatively stable, with the Federal Reserve maintaining steady rates but signaling caution on inflation and labor market risks.
Commodities: Gold funds saw outflows for the third consecutive week as investors favored riskier assets amid the trade truce optimism. Commodities markets remained firm overall, with increasing interest in hard assets like gold and infrastructure as potential diversifiers against correlated equity-bond movements.