This week presented a blend of encouraging signals and ongoing uncertainties across global markets. Investors continue to navigate a complex landscape shaped by evolving economic data and geopolitical developments.

As we wrap up the final week of May, global markets were caught between mixed economic signals and rising geopolitical and trade tensions. From surprising U.S. consumer strength to renewed friction with China and a cautious tone from central banks, this week served up plenty for investors to digest.

United States: Mixed Signals, Rising Uncertainty

• Durable Goods Orders fell -6.3% (vs. -7.8% expected) — a smaller decline suggesting manufacturing resilience.
• Consumer Confidence jumped to 98.0 (vs. 87.0 expected) — highlighting household optimism.
• Initial Jobless Claims rose to 240K — hinting at potential labor market softening.
• Pending Home Sales plunged -6.3% (vs. -1.0% expected) — pointing to housing weakness.
• Crude Oil Inventories dropped 2.795M barrels — supporting oil prices.

Germany: Economic Pressures Mount

• Import Prices: -1.7% m/m (worse than expected).
• Unemployment rose by 34K (vs. 10K forecast).
• Retail Sales: -1.1% m/m (vs. expected gain).

Japan: Inflation Accelerates

Tokyo Core CPI rose 3.6% y/y — the fastest pace since January 2023 — keeping pressure on the Bank of Japan.

Eurozone: Confidence Flat, Policy Divided

Consumer Confidence held at -15.2. A hawkish ECB member cautioned against further cuts until at least September, calling for policy patience amid uncertainty.

FOMC Minutes – Fed Emphasizes Patience

The Fed highlighted risks from persistent inflation and unemployment, while revising growth lower for 2025–2026 due to tariff effects. Officials emphasized a high threshold for any policy moves.

U.S.–China Tensions Resurface

Washington halted jet engine and chip software exports to China. Trump reportedly ordered chip designers to stop sales. Beijing may retaliate, raising trade war concerns.

Tariff Ruling Adds to Policy Uncertainty

The Federal Trade Court blocked Trump's global tariffs. The administration plans to appeal. This legal uncertainty adds more volatility to trade policy expectations.

Markets at Key Levels

NASDAQ

NASDAQ retested a broken trendline near $21,450, with a double top pattern potentially forming. The index dropped $600 this week. Resistance stands at $21,800, while support near $21,000 remains critical for bulls.

Gold

Gold rebounded from $3,250 and reclaimed $3,300, maintaining its bullish structure. The current range is between $3,180 and $3,430. Only a break below $3,000 would shift sentiment bearish.

As we close this week, markets remain cautious amid ongoing uncertainties. Staying informed and ready is key for what lies ahead.

Disclaimer: This material is for informational purposes only and does not constitute investment advice or an offer to buy or sell any financial instruments. Market conditions can change rapidly and past performance is not indicative of future results. Please consult a qualified financial advisor before making any investment decisions.