May 20, 2025, 07:43 GMT+2 A look at the day in European and global markets, by Ankur Banerjee Investors took the downgrade of the United States' rating by Moody's in stride and returned to pinning their hopes on trade deals. The lack of progress on this front keeps them on edge as the expiration of the 90-day truce granted by the US approaches. President Donald Trump's reciprocal tariffs will come back into effect at the beginning of July and negotiators around the world are scrambling to define trade agreements with the world's largest economy. Yet, successful deals have been scarce. The news so far has only increased uncertainty and the US Treasury does not expect any announcement during this week's G7 in Canada. Japan's chief trade negotiator said that Tokyo's position, which calls for the elimination of US tariffs, has not changed. In Asian trading, markets stabilized after yesterday's session, which saw, in the first part, heavy selling of US government bonds following Moody's decision on Washington's rating. Treasury yields remain at high levels but are not rising further and the dollar is trading not far from recent lows against its counterparts. Stock indices, on the other hand, are positive. Futures for European stock exchanges indicate a sharply higher start after yesterday's flat close. With the European macro calendar rather thin, investors will focus on any information related to trade agreements. In Asia, the most important news was China's cut of benchmark interest rates for the first time since October. Major state banks also lowered deposit rates, as authorities work to ease monetary policy and help support the economy. The Australian dollar AUDUSD was little changed after the Reserve Bank of Australia cut interest rates, as expected.
The Australian dollar AUDUSD was little changed after the Reserve Bank of Australia cut interest rates, as expected.
The Australian dollar AUDUSD was little changed after the Reserve Bank of Australia cut interest rates, as expected. In the absence of real news, geopolitical concerns could take over. After a phone call yesterday with Russian President Vladimir Putin, Trump said that Russia and Ukraine will immediately begin negotiations for a ceasefire. But the Kremlin said the process will take time and Trump said he is not ready to join Europe with new sanctions to put pressure on Moscow.
Thomson ReutersChina cuts benchmark lending rates for the first time since October
Thomson ReutersChina cuts benchmark lending rates for the first time since October
Thomson ReutersUS yield curve
The main developments that could influence markets today: Germany, April producer prices Eurozone, May consumer confidence data Results, Vodafone, Diploma
Thomson ReutersUS yield curve
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