Weekly Global Market Pulse – Tariffs Tug-of-War Meets Sticky Inflation

Europe grappled with conflicting signals as U.K. inflation surprised to the upside, while Bank of England easing talks left sterling firm but rate-cut expectations unclear. Commodities mirrored this duality: OPEC+’s planned July supply hike capped crude’s rally, while soft retail data from Australia and the U.S. bolstered hopes for sustained global disinflation.

Equities faced tariff-driven volatility. The S&P 500 ROSE 1.9% to 5,912, buoyed by AI-chip strength despite tariff headlines sparking intraday swings. The Nasdaq’s 9.6% May surge marked its best month since 2023. London’s FTSE 100 dipped 0.1% as retailers like JD Sports fell on tariff exposure fears, while utilities attracted defensive flows. Asia-Pacific markets lagged, with Japan’s Nikkei 225 dropping 1.3% on U.S. tariff reinstatements.

Semiconductors outperformed (Nvidia +4% weekly) on AI demand, while Asian automakers (Mazda -3.5%, Kia -3.8%) bore the brunt of tariff shocks. Deal FLOW remained muted, though U.S. fiscal-reform chatter lingered.