On Friday, the US stock indices once again renewed their record highs. By the end of the day, the Dow Jones (US30) rose by 0.03% (weekly result +0.39%). The S&P 500 (US500) increased by 0.84% (weekly result +2.36%). The Technology Index Nasdaq (US100) closed higher by 1.71% (weekly result +2.35%). The markets were supported by strong US labor‑market data: the number of new jobs in April exceeded expectations, and the unemployment rate remained unchanged. Over the week, all major indices showed solid growth, supported by strong corporate earnings and the ongoing rally in technology stocks.

The Canadian dollar (CAD) weakened to around 1.37 per US dollar, continuing its decline after reaching late‑April highs. Pressure on the currency came from weak Canadian labor‑market data: employment unexpectedly fell, and the unemployment rate rose to its highest level in six months. This strengthened expectations that the Bank of Canada (BoC) will focus on supporting the economy and avoid tightening monetary policy in the near future. The hawkish tone of Banxico is linked to rising inflation risks amid high energy prices caused by the conflict in the Middle East.

The Mexican peso (MXN) strengthened to around 17.2 per US dollar, approaching its highest levels in nearly two years after signals from the Bank of Mexico about the end of the rate‑cutting cycle. The regulator lowered the rate by 25 basis points to 6.5%, although part of the market expected more aggressive easing. At the same time, the central bank made it clear that further rate cuts are unlikely in the near future.

On Friday, European stock markets continued to decline for the second session in a row amid a new wave of tensions between the US and Iran, which increased concerns about disruptions to Europe’s energy supplies. By the end of the day, Germany’s DAX (DE40) fell by 1.32% (weekly result +0.26%), France’s CAC 40 (FR40) closed down by 1.09% (weekly result -0.12%), Spain’s IBEX 35 (ES35) declined by 0.95% (weekly result +0.34%), and the UK’s FTSE 100 (UK100) ended the session down by 0.43% (weekly result -1.38%). Key European indices finished in negative territory as reports of attacks on tankers and military vessels undermined investor hopes for a quick diplomatic resolution of the conflict.

On Friday, WTI oil prices remained around $95 per barrel, showing almost no change, as new clashes between the US and Iran increased doubts about the durability of the current ceasefire and reduced expectations of a quick diplomatic settlement. Despite this, oil still fell by about 7% for the week. The main factor for the market remains the situation around the Strait of Hormuz, which has been operating under severe restrictions since late February, disrupting global oil supplies and intensifying the supply deficit.

Platinum prices (XPT) held above $2000 per ounce, remaining near their highest levels since late April, as the ongoing supply deficit continued to support the market despite rising inflation risks due to renewed tensions in the Middle East. Clashes between the US and Iran near the Strait of Hormuz once again cast doubt on the stability of the current ceasefire and increased concerns about disruptions to energy supplies.

In Asia on Friday, Japan’s Nikkei 225 (JP225) fell by 0.19% (weekly result +3.60%), China’s FTSE China A50 closed down by 0.90% (weekly result -0.88%), Hong Kong’s Hang Seng (HK50) declined by 0.87% (weekly result +0.98%), and Australia’s ASX 200 (AU200) dropped by 1.51% (weekly result +0.22%).
On Monday, the offshore yuan was holding at 6.79 per dollar, which is the strongest level for the Chinese currency since February 2023. The market is positively assessing the resilience of China’s economy: despite the logistics crisis in the Strait of Hormuz, exports in April surged by 14.1% to a record 359.44 billion dollars, while imports, driven by strong domestic demand and semiconductor purchases, jumped by 25.3%. Domestic indicators also signal a revival – consumer inflation (CPI) reached 1.2%, and the Producer Price Index (PPI) remained in positive territory at 2.8%, indicating a recovery in industrial activity. All global market attention is now focused on Beijing, where the Donald Trump-Xi Jinping summit will take place on May 14-15. Investors expect the leaders to agree on a “roadmap” for unblocking the Strait of Hormuz, discuss the status of Taiwan, and lay the foundation for a new trade agreement that may include a dialogue on AI security.

On Friday, the New Zealand dollar (NZD) strengthened again to a two‑month high near 0.596 US dollars, recovering after a decline in the previous session. Employment statistics in New Zealand, published earlier, did not give markets a clear signal and barely changed rate expectations. Investors still assess the probability of a near‑term rate hike as moderate, although a July tightening is already priced in due to rising inflation risks from expensive energy.
In Australia, markets currently assess the probability of a June rate hike by the Reserve Bank (RBA) as low after a series of previous increases. At the same time, expectations of further tightening by the end of the summer remain fairly high, and the projected peak rate is almost fully priced in. The Australian dollar held around 0.72 US dollars after declining in the previous session.