📉 Markets & Macro
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U.S. Stocks Pause Rally:
The S&P 500 snapped a six-day winning streak, closing slightly lower.
Investors are cautious amid debates over a proposed tax-cut bill that could expand the U.S. deficit.
Meanwhile, Treasury yields inched higher, with the 30-year bond yield nearing 5%. -
Moody's Downgrade Looms:
Following Moody's downgrade of the U.S. credit rating to Aa1, attention turns to the upcoming 20-year Treasury auction.
This event is seen as a critical test of investor appetite for U.S. debt. -
Gold Shines Amid Dollar Weakness:
Gold prices rose over 1% as the dollar weakened, reflecting investor concerns over fiscal policies and potential inflation.
🏦 Banking & Rates
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Mortgage Rates Dip Slightly:
Average mortgage rates saw a slight decline, offering a modest reprieve for prospective homebuyers.
Refinance rates also edged lower, providing opportunities for homeowners to lock in better terms. -
CD Rates Offer Attractive Yields:
Despite a general trend of declining rates, some banks are offering certificates of deposit (CDs) with yields up to 4.5%, presenting a viable option for conservative investors.
🌍 Global Developments
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China Cuts Key Lending Rates:
In an effort to stimulate its economy amid ongoing trade tensions, China reduced its benchmark lending rates for the first time since October.
Major state banks followed suit, signaling a coordinated move to boost growth. -
EU Lifts Sanctions on Syria:
The European Union agreed to lift economic sanctions against Syria, a significant policy shift aimed at encouraging reconstruction and stability in the region. -
UK Political Tensions Over Tax Proposals:
A leaked memo revealed that Deputy Prime Minister Angela Rayner proposed significant tax increases, including raising the corporation tax rate for banks and ending certain tax reliefs.
Chancellor Rachel Reeves opted for spending cuts instead, highlighting internal disagreements within the government.
🚨 Noteworthy Headlines
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Elon Musk to Reduce Political Spending:
Elon Musk announced plans to significantly cut back on political donations ahead of the 2026 midterm elections, citing a desire to focus more on his companies and less on political involvement. -
Severe Weather Hits Central U.S.:
A major tornado outbreak affected parts of the Great Plains and Mid-South regions, causing significant damage and power outages.
Emergency services are responding to the aftermath. -
ZIM Integrated Shipping Surpasses Earnings Expectations:
ZIM reported first-quarter earnings per share of $2.45, significantly beating analyst estimates.
The company attributed its strong performance to higher revenue and volume growth.
Stay tuned for tomorrow's update as we continue to monitor these developments and their implications for the markets.