Yesterday's Highlights:
1. Tariffs -
Japanese media: The U.S. has shown flexibility in reducing additional equivalent tariffs on Japan;
Insiders: U.S. and Indian negotiating representatives may finally finalize tariff reductions and market access issues, reaching a temporary agreement.
Trump: A good trade agreement will be reached with Germany.
2. Trump - Musk Split: Intense mutual criticism from both sides, Tesla's market value evaporated by $150 billion.
Musk calls Trump an ungrateful person and implies that Trump would not have won the election without his help.
Trump said Musk opposes the bill because it includes a provision that would reduce electric vehicle tax credits, which Tesla benefits from.
3. U.S. initial jobless claims surged to an 8-month high; U.S. trade deficit sharply decreased by 55.5% to $61.6 billion due to a steep fall in imports caused by Trump's tariffs.
4. U.S. Treasury's semi-annual report: Did not designate any country as a currency manipulator.
5. European Central Bank lowered three key interest rates by 25 basis points. Lagarde hinted that the rate cut cycle may end, and the market no longer fully prices in another 25 basis point rate cut this year.
6. U.S. Treasury's latest report rarely did not designate any country as a currency manipulator but warned it would strengthen actions against unfair monetary policies. This means that if tariffs cannot suppress opponents, the U.S. may directly target various currencies!
Today's Focus:
14:00, Germany's April seasonally adjusted industrial output month-on-month, Germany's April seasonally adjusted trade balance, UK May Halifax seasonally adjusted house price index month-on-month;
17:00, Eurozone first quarter GDP year-on-year revision, Eurozone first quarter seasonally adjusted employment month-on-month final value, Eurozone April retail sales month-on-month;
20:30, Canada May employment numbers, U.S. May unemployment rate, U.S. May seasonally adjusted non-farm payrolls, U.S. May average hourly wage year-on-year/month-on-month;
South Korea - Seoul Stock Exchange closed for one day in observance of Memorial Day.
