Morning Economic Report 5-12-25

China PPI and CPI remain in deflation but are ignored somewhat due to the furore over the temporary trade deal between the US and China. US cuts Chinese tariffs from 145% to 30%, China cuts US tariffs from 125% to 10%, therefore 115% cut each and to be applicable for 90 days. Both sides talk of progress in relations and WTO says it is pleased with the outcome. Geopolitical mood is also helped by the ceasefire in Kashmir and talk of one in Ukraine. Tech takes a run initially as seen in Nasdaq (+3.8%), S&P (+2.8%), DOW (+2.1%) futures, with global bourses rallying. Gold, JPY and other havens fall away. DAX +1.05%, CAC +1.82%, FTSE +0.42%, Euro STOXX600 +1.12%. USD surges with risk confidence, DXY 101.56. Gold 3219. BTC $104,437.