Market Summary (May 8, 2025)

The markets are currently bullish on risk assets, driven by positive developments in US-China trade negotiations and indications of a potential tariff reduction from the US. Trump has softened his stance, hinting at a significant decline in tariffs from around 160% toward a more manageable level, which supports risk-on sentiment. Additionally, the US and UK have announced a comprehensive trade agreement, reinforcing a favorable global trade outlook. Fed Powell reiterated a “wait and see” approach, signaling no immediate rate cuts but maintaining a hawkish tone that boosts the US dollar. Gold remains bullish in the broader context, despite near-term bearish signals from rising US dollar strength. Equities are firm, while gold experiences mixed sentiment, primarily influenced by evolving trade tensions and monetary policy cues.