Wednesday Afternoon Coffee - Markets Update - 14 May 2025 - Global Stocks Rise as Trade Tensions Ease and Dollar Stabilizes

The Trade Academy Team
May 14
2 min read

Markets Update: Global equities rose Wednesday while the U.S. dollar regained some ground following its recent slump, as cooling trade tensions between Washington and Beijing improved investor sentiment. Gold prices, however, fell sharply as the safe-haven appeal of bullion waned.

Global Markets Roundup: 14 May 2025

The MSCI All-Country World Index (EURONEXT:IACWI) gained 2.04 points, or 0.23%, to close at 873.24. The mood was buoyed by signs that the U.S.-China trade spat is de-escalating, easing fears of a broader global trade war and prompting a shift back toward riskier assets. Wall Street finished mixed. The S&P 500 added 6.03 points (+0.10%) to 5,892.58, while the Nasdaq Composite climbed 136.72 points (+0.72%) to 19,146.81. The Dow Jones Industrial Average slipped 89.37 points (-0.21%) to 42,051.06.

Europe Pauses After Rally

European stocks cooled following four straight gains, with the STOXX 600 (SXXP) easing 0.24%. In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 1.56% to 614.33. Japan’s Nikkei (NI225) edged down 55.13 points (-0.14%) to 38,128.13, while Hong Kong’s Hang Seng Index (HSI) rallied.

Dollar Steadies, Fed Eyes Tariff Impact

The U.S. dollar firmed, up 0.14% against a basket of major currencies DXY, rebounding from sharp losses earlier this month. The euro EURUSD fell 0.15% to $1.1167, and the British pound (GBPUSD) dropped 0.38% to $1.3253. U.S. Treasury yields rose as markets awaited upcoming data and budget guidance from Congress. Euro zone bond yields held steady near multi-week highs. The Federal Reserve signaled caution, with Vice Chair Philip Jefferson citing “uncertainty” around tariffs despite recent inflation data showing progress toward the Fed’s 2% target. Fed Chair Jerome Powell is expected to speak Thursday.

Gold Tumbles, Crude Slips

As risk appetite improved, gold prices fell to their lowest level in over a month. U.S. gold futures dropped 1.8% to $3,188.30 per ounce, and spot gold slid 2.07% to $3,180.07.

Oil prices weakened amid rising U.S. crude inventories. Brent crude (BRN1!) lost 54 cents (-0.81%) to settle at $66.09 a barrel, while West Texas Intermediate (CL1!) declined 52 cents (-0.82%) to $63.15.

Soybeans Rally on Trade Pause, Wheat and Corn Follow

Soybeans (ZS1!) gained for a fifth straight session, finishing up 5¼ cents at $10.77¾ per bushel after hitting $10.82—its highest since July. Optimism over a 90-day pause in mutual tariffs between the U.S. and China drove momentum, with hopes rising that China may resume U.S. purchases under a revived version of the 2020 Phase One deal. Corn (ZC1!) gained 3 cents to $4.45½ per bushel, while wheat (ZW1!) rose 7½ cents to $5.24¾ per bushel.

Outlook

Investors now turn to Thursday’s U.S. retail sales report for clues on consumer resilience, and await Powell’s comments on monetary policy amid ongoing tariff uncertainty. In geopolitics, eyes are on upcoming talks in Istanbul between Russia and Ukraine, aimed at ending Europe’s most devastating conflict since World War II.

Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team