Sunday Market Brief – May 11, 2025

Key Developments in Trade, Global Markets, and Equities

Welcome to the ChartAddicts Sunday Brief. This report delivers a concise breakdown of the most important market-moving news across global trade, financial markets, and macroeconomic trends. Here's what you need to know heading into the week.

United States–China: Constructive Progress on Trade

Following two days of negotiations in Geneva, U.S. Treasury Secretary Scott Bessent described recent talks with Chinese officials as "productive." Both sides agreed to establish a new trade consultation mechanism and are reportedly working on reducing steep tariffs currently in place:

• U.S. tariffs on Chinese goods remain at 145%

• China’s tariffs on U.S. exports remain at 125%

An official update is expected early this week. These negotiations could signal the beginning of a de-escalation in trade tensions that have weighed on equity markets and disrupted supply chains.

Market Implication: Traders should prepare for potential volatility around official statements or tariff adjustments. Key sectors to monitor include technology, industrials, and retail imports.

U.S.–UK Trade Deal: Key Tariff Changes Finalized

The United States and United Kingdom have reached a trade agreement impacting several major industries:

• Automotive: Tariffs on UK car exports to the U.S. will drop from 27.5% to 10%

• Aerospace: UK-made parts, including Rolls-Royce engines, are exempt from U.S. import duties

• Agriculture: The UK will eliminate its 19% tariff on U.S. ethanol, opening up to 1.4 billion liters annually

While the agreement supports exporters and transatlantic supply chains, some UK industries—such as domestic ethanol producers—have expressed concern about increased competition.

Market Implication: Positive sentiment for companies in aerospace and autos. May also boost commodity shipping and agricultural sectors.

Global Markets Overview

• Equities: The MSCI World Index showed moderate recovery last week as investors digested the latest trade developments and awaited economic data.

• Currency Markets: The U.S. dollar weakened slightly amid increased appetite for risk assets.

• Cryptocurrency: Bitcoin climbed to a four-month high, reflecting renewed interest in non-traditional assets amid economic uncertainty.

Outlook: Traders are cautiously optimistic. The upcoming release of inflation data and continued trade negotiations will be key catalysts in the week ahead.

U.S. Stock Market Recap (Year-to-Date)

• Dow Jones Industrial Average: –2.8%

• S&P 500 Index: –3.7%

• Nasdaq Composite: –7.2%

Despite early-year volatility triggered by tariffs and rate speculation, major indexes are showing signs of technical stabilization. Investors remain sensitive to policy headlines and economic data surprises.

Summary

The global macro landscape remains fluid, with high-impact trade negotiations and sector-specific agreements reshaping short-term outlooks. As always, risk management and macro awareness are essential tools for navigating uncertain markets.

Join us tonight at 7:00 PM ET for the ChartAddicts Sunday Market Outlook Live Stream, where we’ll walk through trade setups, technical levels, and market structure for the week ahead.

—ChartAddicts Research Team

Every Step of the Way

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Disclaimer: This article offers evolving insights for educational purposes only and should not be considered financial advice. Please conduct your own research before making decisions. The author is not liable for any actions taken based on this information.

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