Weekly Summary 15 May 2025: CPI Reports, Tariff Cuts, Tech Stocks

As this week drew to a close, global markets were influenced by inflation metrics, international trade developments, and tech sector strength. From easing US-China trade tensions to Europe’s mixed CPI data and a sharply rising IBEX 35, here’s everything that moved the financial world in the past week.

Global CPI Snapshot Reflects Mixed Inflation Signals

This week’s consumer price index (CPI) reports from the US, Spain, France, Germany, and Italy offered a nuanced view of global inflation. The US April CPI came in softer than expected, supporting expectations of a dovish Fed tilt. In contrast, Spain recorded an uptick in inflation to 3.6%, while France’s CPI fell to 2.2%, and Germany's annualised CPI stood at 2.4%. Italy’s inflation remained relatively stable. These varied results highlight differing economic pressures across major economies. Explore the global CPI trends here.

Key US Data and Earnings in Focus

Markets had their eyes on several US economic indicators this week, with a particular focus on inflation and retail data. The softer-than-expected CPI spurred optimism in equity markets. Meanwhile, retail sales figures and major earnings reports added to the volatility, particularly in tech and consumer sectors. Investors began adjusting their rate cut expectations based on this evolving data mix. Read more about the economic outlook and earnings releases.

Spain’s IBEX 35 Breaks Out to Five-Year High

Spain’s benchmark index, the IBEX 35, surged to a new five-year high, buoyed by positive investor sentiment and strong corporate results. The index defied concerns over global tariff policies, particularly those concerning Chinese electric vehicles. This rally was seen as a vote of confidence in the Spanish economy’s resilience and earnings momentum. Discover what drove the IBEX 35’s gains.

Markets Rally on US-China Tariff Cuts

In a major geopolitical development, both the US and China announced reciprocal tariff reductions, lifting market sentiment worldwide. This move was interpreted as a thawing in trade tensions, especially concerning technology and manufacturing sectors. Global indices responded with strong gains, particularly in the Asia-Pacific and US equity markets. Find out how markets reacted to the tariff cuts.

Trump’s Tech Deals Ignite Rally in Sector Stocks

President Donald Trump’s influence in the market made headlines again this week. His involvement in major tech deals, including talks with domestic and international firms, triggered a sharp rise in technology stocks. The sector's bullish performance reflected investor enthusiasm over potential deregulation and increased capital flow. Read about Trump’s impact on tech markets.

EUR/USD Surges on Soft US Inflation

Currency markets responded swiftly to US inflation data, with the EUR/USD jumping to a one-month high. The weaker CPI figures weighed on the US dollar, while expectations around European Central Bank (ECB) policies supported the euro. This currency action was emblematic of shifting rate expectations and relative economic strength between the regions. Explore how EUR/USD reacted to the latest inflation data.

Understanding the ECB’s Role and Current Strategy

Given the euro’s recent moves, attention also turned to the European Central Bank (ECB). A refresher on its role revealed how it balances monetary policy, inflation targeting, and financial stability across the Eurozone. The ECB’s current positioning appears more cautious, especially as inflation decelerates unevenly across member states. Learn more about the ECB’s structure and policy direction.

Conclusion

From mixed global inflation prints to easing trade tensions and a tech-driven equity rally, the week ending 15 May 2025 provided plenty for investors to digest. US economic data set the tone, while Europe showed divergence in inflation and currency performance. With tariff relief and strong tech momentum, sentiment closed the week on an optimistic note.

TL;DR FAQs

What did the US April CPI data reveal?

The CPI came in softer than expected, fuelling hopes for a more dovish Fed stance.

Why did the IBEX 35 hit a new high?

Strong corporate earnings and resilience in the face of tariff fears propelled the index.

What triggered the EUR/USD rise?

A weaker US dollar following soft inflation data, combined with stable ECB expectations, supported the euro.

What is the latest on US-China trade relations?

Both countries announced mutual tariff reductions, boosting global market sentiment.