BoykoWealth.com — Automated Daily Report on World Macroeconomic News for May 12, 2025
A comprehensive summary of the news, covering GDP, inflation, unemployment, consumer confidence, equity markets, fixed income and interest rates, commodities, currencies, economic indicators, geopolitical developments, and new technology news.
GDP: The US economy is showing signs of a slowdown, with GDP contracting by 0.1% in Q1 2025 [1]. The average annual growth rate is expected to decrease to 1.3% in 2025, down from 2.8% in 2024 [1]. In China, economic growth stood at 5% in 2024, but activity lost momentum in Q1 2025 due to the fall in trade with the US [1]. The Eurozone is expected to see growth supported by increased military spending and fiscal support in Germany [1].
Inflation: US inflation is projected to rise to 4.0% annually by Q2 2026, following changes in economic policy [1]. In the Eurozone, disinflation is visible, with the harmonized index expected to grow by 0.9% in 2025, compared to 2.3% in 2024 [1].
Unemployment: No specific updates on unemployment rates were provided in the recent reports.
Consumer Confidence: Consumer confidence in China remains low despite supportive economic policies [1]. In the US, consumer confidence is likely impacted by the ongoing trade conflicts and economic uncertainties [1].
Equity Markets: US equity markets surged on May 12, 2025, following the announcement of a temporary reduction in tariffs between the US and China [2]. The Dow Jones Industrial Average gained 2.81%, closing at 42,410 points [3]. The S&P 500 rose by 3.26% to 5,844 points, and the Nasdaq Composite increased by 4.35% to 18,703 points [3]. Major technology stocks saw significant gains, with Tesla up 8%, Amazon up 6%, and Apple up 6% [2].
Corporate Actions and Earnings: Pharmaceutical companies saw declines after President Trump announced an executive order to ensure the US pays the same price for drugs as the lowest costs paid by any other nation[2]. Eli Lilly dropped 3.5%, while Pfizer and Merck each fell more than 2%[2]. Hertz Global reported wider losses and lower sales[4].
Trending Industry Update: The semiconductor industry saw substantial gains, with Marvell Technology, Micron, and ON Semiconductor each jumping more than 8%[2]. The VanEck Semiconductor ETF was up 6% [2].
United States: The US-China trade agreement led to a significant reduction in tariffs, boosting market sentiment [2]. Treasury yields rose sharply as tariff fears eased [4].
Europe: The Eurozone is expected to benefit from increased military spending and fiscal support in Germany [1]. The ECB is anticipated to cut policy rates by 25 basis points in June and July [1].
Asia: China’s economic activity lost momentum in Q1 2025 due to the fall in trade with the US [1]. However, domestic demand is being supported by monetary, fiscal, and property policy easing measures [1].
Fixed Income and Interest Rates: The US Federal Reserve is expected to maintain a stable target range for the Fed Funds rate throughout 2025 at 4.25% – 4.5% [1]. The ECB is likely to cut policy rates to 1.75% by July 2025 [1].
Commodities: Gold futures fell by 3.5% to $3,230 per ounce [2]. West Texas Intermediate crude oil futures rose nearly 4% to $63.40 [2].
Energy: NRG Energy acquired 18 natural-gas power plants, betting on soaring energy demand [4].
Metals: The price of gold slid, leading to a decline in shares of Newmont Mining, the world’s largest producer of gold [2].
Currencies: No specific updates on currency movements were provided in the recent reports.
Economic Indicators: The US Consumer Price Index (CPI) data for April is expected to be released later this week [5].
Geopolitical Developments: The US-China trade agreement provides a temporary reprieve for the global economy [2]. Hamas released the last living US hostage from Gaza [4].
New Technology News: Amazon sealed a new partnership with FedEx for delivering large packages [4]. The Wall Street Journal reported on the significant role of Annapurna Labs in Amazon’s AI strategy [6].
This report provides a detailed overview of the latest macroeconomic news and market movements, highlighting key developments across various sectors and regions.
References
[1] The updated economic scenario and forecasts of the Economic Research …
[2] Markets News, May 12, 2025: Stocks Surge After US, China Agree to Slash …
[3] Market Review: May 12, 2025 – Investrade
[4] News Archive for May 12, 2025 – The Wall Street Journal
[5] Stock market today: Dow, S&P 500, Nasdaq futures surge as markets cheer …
[6] WSJ: Tech News Briefing MONDAY, MAY 12, 2025 | amnn1のブログ