Morning Economic Report 5-13-25

After the US-China trade agreement, risk was back in fashion and safe assets were sold off. There is some consolidation in equities this morning as the initial euphoria of brighter economic prospects is evaporating. Fitch estimates that US effective tariff rate is now 13.1%. German investor’s morale is much better than expected in May. US headline inflation is forecast to be 2.4% in April with the core figure at 2.8%. European shares are slightly higher; gold is correcting upwards after yesterday’s sell-off and the dollar is currently on the backfoot.