🌍 Global Market Morning Brief – Weekly Overview

📆 As of May 25, 2025

The past trading week closed with widespread declines across most global equity markets. Mounting concerns over slowing economic momentum in the U.S., weaker manufacturing data, and caution ahead of key inflation figures led to a bearish sentiment. However, selective strength was seen in the UK and Hong Kong markets.

🇺🇸 United States: Broad-Based Losses Across Indices

• S&P 500 fell by 1.70%, closing at 5,802.82, with broad declines in consumer and tech stocks.
• Nasdaq 100 dropped by 1.05% to 20,915.65, reflecting investor caution in high-growth sectors.
• Dow Jones Industrial Average saw the steepest decline, shedding 2.21% to finish at 41,603.07, largely weighed by industrials and financials.
• Russell 2000, representing small-cap stocks, lost 2.03%, ending the week at 2,039.85, signaling growing unease in domestic growth prospects.

Markets remain on edge as investors await fresh inflation data and signals from the Federal Reserve on the future path of interest rates.

🇪🇺 Europe: Mixed but Mostly Negative Performance

• EURO STOXX 50 slipped by 1.53% to 5,326.31, as macroeconomic concerns persisted.
• STOXX Europe 600 lost 0.50%, while managing to stay above key technical levels.
• FTSE 100 of the UK bucked the trend, rising 0.38% to 8,717.97, boosted by strength in energy and banking sectors.
• Swiss Market Index (SMI) declined 0.84%, ending the week at 12,198.69, following weakness in defensive sectors.

Despite overall caution, British markets were supported by favorable earnings reports and a resilient pound.

🌏 Asia: Divergence Between Japan and Hong Kong

• Nikkei 225 in Japan fell by 1.10% to 37,160.47, amid declines in export-heavy sectors and cautious forward guidance from corporates.
• In contrast, Hang Seng Index in Hong Kong surged 1.92% to 23,601.26, led by a strong rebound in Chinese tech stocks and a return of foreign capital inflows.

The Asian markets reflected investor repositioning, with renewed optimism in China but continued pressure on Japan’s export-driven economy.

₿ Cryptocurrencies: Slight Positive Momentum

• Bitcoin (BTC) gained 1.22%, trading at $108,102.10, showing resilience above the psychological $105,000 mark.
• Ethereum (ETH) dipped 0.46% to $2,512.42, exhibiting sideways movement amid thin trading volumes.

The crypto sector showed relative stability, with cautious optimism as regulatory pressure eased slightly during the week.

🧭 Outlook Summary

The week was characterized by volatility, with risk-off sentiment dominating U.S. equities and mixed trends across global markets. While some regional bright spots emerged, investor sentiment remains fragile.

The upcoming week will be pivotal, with inflation data in the U.S. and Europe expected to shape monetary policy expectations. A clear trend may not emerge until investors get more clarity on economic resilience and central bank direction.