Morning Brew May 7 2025

Good morning,

Key news are:

• India attacked Pakistan and Pakistani Kashmir on Wednesday and Pakistan said it had shot down five Indian fighter jets in the worst fighting in more than two decades
•  Chinese authorities announced stimulus measures, including interest rate cuts and a major liquidity injection as Scostt Besset, J. Greer and Chinese counterparts will meet in Geneva on Saturday.
• DJT announced tariffs on pharmaceutical goods in the next two weeks, weighing on pharma stocks. He also hinted at an important announcement ahead of travelling to the Middle East.
• India and Britain agree on a trade deal
• US Rate decision up tonight with J. Powells press conference likely key.

Equities traded lower across the board with the S&P 500 dropping 0.8%, Nasdaq 100 declining 0.9%, and the Dow fell by 389 points, the Dax retreated from the all-time high resistance. Volumes were higher than Monday but below average. Palantir lost 13%, Supermicro lost 4.7% after the bell and AMD could rise by 2%.

10-year yields re at 4.30 ahead of the rate decision tonight, the USD Index at 99.50 with EURUSD at 1.1350, USDJPY 143.25 and GBPUSD 1.3340, Gold and Silver rose strongly yesterday and are retreating a little today to trade at 3382 and 33. CAD moved little on the meeting between the two leaders.

Oil had the best day in a long time to trade at 59.70.

We remain in news-driven markets and need to expect spikes of volatility at any point in time.

We are happy to announce that in early 2026, all private clients of Saxo Sank Switzerland that are Swiss residents can receive their Swiss Tax statement for free!

May 7       Switzerland     Foreign Exchange Reserves                         

 May 7       Germany         Industrial Orders                                     

 May 7       France             Trade Balance                                     

 May 7       Italy                 Retail Sales                                      

 May 7     US                     Federal Reserve FOMC Meeting                      

 May 8       UK                   Bank of England Interest Rate Decision            

 May 8       UK                   Monetary Policy Report     

May 9       China                        Trade Balance           

May 9       Switzerland     Consumer Confidence Index                         

 May 9       Japan              Household Spending                                

 May 9       Canada          Labour Force Survey                               

 May 9       US                   PPI Release                                       

Earnings:

• Wednesday: Novo Nordisk, Uber, Disney, Applovin, Unicredit, Doordash, Fortinet
• Thursday: Toyota, Shopify, Mercado Libre, ConocoPhillips, Nintendo, McKesson, Enel, Rheinmetall, Siemens Energy
• Friday: Enbridge