The Dow Jones Index (US30) gained 0.21% on Thursday. The S&P 500 Index (US500) added 0.41%. The Nasdaq Technology Index (US100) closed lower by 0.18%. The GE stocks rose by 2.8% as Qatar placed Boeing’s most significant order for wide-body airplanes powered only by GE engines. Economic data showed retail sales slowed in April, and wholesale inflation unexpectedly fell, easing price concerns and lowering Treasury yields. Fed Chairman Powell warned of lingering economic uncertainty and potential supply-side shocks, keeping markets cautious despite recent optimism on US-China trade.

The Mexican peso slipped to 19.50 per US dollar from a seven-month peak of 19.38 as markets perceived a 50 bps cut in Banxico’s interest rate to 8.50% on May 15. With core and core inflation still at 3.9% and first-quarter GDP growth at just 0.2% after contraction, the Board decided that a modest rate cut would support the fragile economic recovery, keeping disinflation on track to meet the 3% target.

Equity markets in Europe were mostly down yesterday. Germany’s DAX (DE40) rose by 0.72%, France’s CAC 40 (FR40) closed higher by 0.21%, Spain’s IBEX35 (ES35) added 0.65%, and the UK’s FTSE 100 (UK100) closed 0.57%. Defense stocks rose amid fading prospects for peace talks to end Russia’s war in Ukraine. Shares of Hensoldt, Rheinmetall and Renk rose by 4-8%. Merck shares fell nearly 6% after the company cut its full-year forecast. Meanwhile, Siemens fell by 1.3% after disappointing second-quarter profit despite reiterating a positive outlook for fiscal 2025.

European Union officials said the bloc is pushing for a more comprehensive deal on tariff cuts with the US than those currently being negotiated with Britain and China. EU negotiators expressed confidence in the bloc’s economic clout and said they would not be pressured to reach unfavorable terms.

The US natural gas (XNG/USD) prices fell below $3.5/MMBtu, their lowest in two weeks, mainly due to weaker near-term demand expectations and lower LNG exports. Forecasts of warmer-than-normal weather through the end of May are expected to limit heating demand, while moderate temperatures are also expected to reduce cooling needs, reducing overall consumption.

Asian markets were mostly down yesterday. Japan’s Nikkei 225 (JP225) was down 0.98%, China’s FTSE China A50 (CHA50) lost 0.41%, Hong Kong’s Hang Seng (HK50) decreased by 0.79% and Australia’s ASX 200 (AU200) was positive 0.22% for yesterday.

The Reserve Bank of New Zealand’s (RBNZ) quarterly expectations survey showed that business executives now see inflation at 2.29% over the next two years as of Q2 2025, up from 2.06% in the previous quarter, the highest over a year. One-year inflation expectations also rose to 2.41% from 2.15%, the highest in the past four quarters.