Market Update

The Consumer Price Index (CPI) report indicating easing inflation has bolstered the belief that the Federal Reserve might initiate an interest rate cut by September. This prospect of a more accommodative monetary policy caused global stock markets to surge to record highs. Supporting this sentiment was Wednesday's retail sales data, which revealed an unexpected stagnation in April. The data showed that consumers were cutting back on discretionary spending, with sales at primarily online retailers declining and sales at restaurants and bars continuing to slow.
Meanwhile, in China, the Hang Seng closed the week up 3.11% as the government took extensive measures to stabilize its property sector. These measures included allowing local governments to purchase apartments, easing mortgage rules, and promising further actions to complete unfinished homes. The central bank reduced down payment requirements and pledged to eliminate the nationwide floor level of mortgage rates, giving cities the authority to set their own rates.
Additionally, China received positive news with industrial production data exceeding forecasts. Industrial production surged by 6.7% year-on-year in April, surpassing market expectations of 5.5% and accelerating from a 4.5% increase the previous month.
In Europe, industrial production rose by 0.6% month-on-month in March. However, this increase was insufficient to offset the decline in January, leaving production 1.6% below December's peak. The recent uptick was driven by a 12.8% increase in Irish production.