MARKET WEEKLY REVIEW

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Get the latest insights on global financial markets with our Weekly Market Review. In it we discuss the key financial headlines from the U.S, Europe, UK, Ireland, and Asia-Pacific, along with in-depth analysis of major asset classes, including:

Equities – U.S, Europe, and UK market trends
Bonds – Interest rate movements and fixed-income insights
Commodities – Oil, gold, and other key market drivers

Stay ahead of market trends with our expert insights. Read the latest update now!

Weekly Market Review: 12th May 2025

The Week in Numbers

Equity Markets

Equity Indices	Value	Weekly Change	YTD Change
S&P 500	5,659.91	+0.28%	-3.77%
NASDAQ	17,928.92	+0.53%	-7.16%
EuroStoxx50	5,309.74	+0.73%	+8.45%
EuroStoxx600	537.96	+0.23%	+5.98%
FTSE 100	8,554.80	-0.40%	+4.67%
ISEQ	10,883.69	+1.93%	+11.54%

Central Bank Interest Rates

Interest Rate	Current Rate	Direction	Rate Change
FED	4.50%	—	0
ECB	2.40%	—	0
BOE	4.25%	↓	-0.25

Government Bonds

Fixed Income	Yield	Weekly Change	YTD Change
US 10YR	4.38	+1.71%	-4.18%
US 2YR	3.88	+1.70%	-8.23%
German 10YR	2.5510	+1.23%	+8.00%
UK 10YR	4.56	+1.44%	-0.02%
Irish 10YR	2.89	+0.68%	9.69%

Foreign Exchange Currency Movements

FX	Value	Weekly Change	YTD Change
EUR/USD	1.1247	-0.47%	+8.61%
EUR/GBP	0.8452	-0.73%	+2.18%
GBP/USD	1.3304	+0.32%	+6.29%

Key Events

13/05/2025 – US Inflation Data
14/05/2025 – UK GDP Data

New Structured Product Page

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Stay Informed with Our Seaspray Private Weekly Financial Market Review

Equities – U.S, Europe, and UK market trends
Bonds – Interest rate movements and fixed-income insights
Commodities – Oil, gold, and other key market drivers

Stay ahead of market trends with our expert insights. Read the latest update now!

FINANCIAL HEADLINES

United States

The Federal Reserve held its May meeting last week. As expected, the Fed did not cut the US interest rate from its current level of 4.50%, with investors more focused on the comments from Fed Chair Jerome Powell. Powell stated that the risks of higher unemployment and rising inflation appeared to have increased, and that if the significant increase in tariffs is sustained by the current administration, inflation is likely to rise, potentially slowing economic growth. However, Powell also highlighted positive labour market data, with the US unemployment rate standing at 4.2%—near maximum employment. He also addressed the contraction in US GDP for Q1, noting that private domestic final purchases—which exclude net exports, inventory investment, and government spending—grew by 3% in Q1, in stark contrast to the overall GDP contraction.

Europe & UK

In Europe, Friedrich Merz was officially voted in as German Chancellor, although not before being defeated in the first round of voting. The shock defeat—marking the first time an incoming Chancellor has been defeated in a first-round vote since the fall of the Berlin Wall—indicates the narrow margin of support Merz commands as he enters government. His election comes in the same week that the EU celebrates its 75th anniversary.

In the UK, the Bank of England cut its interest rate by 25 basis points, as anticipated. Elsewhere, the UK and India officially signed a free trade agreement after three years of negotiations. This was followed on Thursday by a deal with US, which will see reduced tariffs on aluminum and steel for UK importers, while opening market access for US ethanol and beef. However the 10% tariff imposed on April 2nd will stay in place.

Ireland

AIB, one of Ireland’s largest banks, last week agreed its final share buyback with the Government, reducing the State’s ownership to 3.3%. The buyback, worth €1.2bn, was approved at the Bank’s recent AGM by 97% of shareholders. During the Global Financial Crisis in 2008, the Irish State took a 99.8% stake in AIB, which has been gradually reduced over the past 17 years. The State has received a total of €19.2bn since taking the stake, with the remaining shareholding currently valued at €500mn. The proceeds of the share buyback will be held in the Irish Strategic Investment Fund, the State’s long-term investment and infrastructure fund.

Asia-Pacific

Foxconn, best known as one of the largest producers of Apple and Sony products globally, is making a surprising entry into the car industry. The Taiwanese electronics manufacturer last week signed a deal with Mitsubishi Motors to produce electric vehicles for the Japanese brand under the name “Foxtron”. This Foxconn subsidiary will initially manufacture one EV model for Mitsubishi in Taiwan, aimed at the Australian and New Zealand markets, with market entry expected in the second half of 2026. Foxconn is seeking to diversify away from its core iPhone assembly business, which is vulnerable to trade and geopolitical risks. The company had previously consulted Renault about acquiring a stake in Nissan; however, that deal did not materialise.

ASSET CLASS REVIEW

Equities

In the US, equity markets rose last week, with sentiment shifting from day to day. The major talking point was the Federal Reserve interest rate decision, and specifically the comments from Fed Chair Jerome Powell. His cautious tone only reinforced the view that the Fed will not rush to cut rates. In geopolitics, the US and China held their first formal trade talks after a turbulent month of heightened tensions. The US delegation was led by Treasury Secretary Scott Bessent, while the Chinese delegation was led by Vice Premier He Lifeng. The immediate aim of these talks is to reduce tensions between the superpowers before progressing towards any trade agreements. Boston Consulting Group released its annual report on the global asset management industry, estimating that global assets under management grew by 12% in 2024 to a record $128 trillion. In earnings, Palantir Technologies—one of the best-performing stocks on the S&P 500 over the past year—reported positive Q1 results and raised its 2025 revenue outlook to 36%, well ahead of Wall Street’s estimate of 31%. The AI-focused firm reported revenues of $884 million, up 39% from the same period in 2024. Palantir’s share price has increased by 412% over the last 12 months. For the week, the S&P 500 and NASDAQ closed up +0.28% and +0.53% respectively.

In Europe, markets gained last week, as uncertainty over monetary policy decisions and continued trade tensions was offset by positive earnings reports. There was a sharp sell-off on Tuesday after German Chancellor Friedrich Merz failed in his initial bid to secure the Chancellorship, losing the first vote in the Bundestag. He was, however, elected on the second ballot. Markets were relatively muted following the Federal Reserve decision, as they were more focused on Powell’s comments. In earnings, Novo Nordisk—one of Europe’s largest companies—posted strong Q1 results, with net profits rising 14% and sales increasing by 18%. However, the company reduced its full-year outlook, primarily due to issues related to “compounding” in the US. In this context, compounding refers to the practice whereby certain US pharmacies legally reproduce brand-name medicines by combining, mixing, or altering ingredients. Due to a shortage of Wegovy and Ozempic, these pharmacies are permitted to compound the drugs until the end of May. For the week, the EuroStoxx50 and STOXX 600 closed +0.73% and +0.23% higher respectively.

In the UK, the FTSE 100 recorded 16 consecutive sessions of gains up to Wednesday last week—the longest run of daily gains in its history. The signing of a trade agreement with India, the most significant since the UK left the EU, along with the trade deal with the US helped lift the index. In corporate news, Deliveroo, the food delivery company, agreed to a buyout by US rival DoorDash. The deal is valued at approximately £2.9 billion—significantly below Deliveroo’s initial valuation of £7.6 billion when it listed on the FTSE four years ago. Deliveroo currently operates in nine countries, including the UK and Ireland. The food delivery sector has seen increased consolidation in recent years, with companies pursuing scale as a strategy for future growth. For the week, the FTSE 100 closed slightly lower, down -0.40%.

Bonds

Global bond yields moved lower early in the week, however recovered later in the week, as markets awaited interest rate decisions from both the US and the UK. As expected, the Fed did not cut rates, and Jerome Powell maintained a cautious tone in his post-announcement remarks. He also dismissed the idea of a pre-emptive rate cut in response to potential trade uncertainty, which helped bond yields. The US 10-year yield rose on Friday to 4.38%, after falling as low as 4.26% on Wednesday evening. In the UK, the Bank of England cut interest rates by 0.25%, however the decision was only narrowly agreed, with 5 to 4 in favour of the cut. The 10yr Gilt rose due to the announcement of the US-UK trade deal, closing at 4.56%.

Commodities

Crude oil prices dropped to their lowest level in four years at the beginning of last week, as OPEC+ announced a second consecutive monthly increase in output. Saudi Arabia, Russia, and six other member states agreed to raise daily production by 411,000 barrels, despite falling prices and economic concerns related to tariffs. However, prices recovered slightly later in the week due to a larger-than-expected drop in US crude inventories. Brent crude closed at $63.91, while WTI closed at $61.02. In metals, gold prices increased to $3,324 last week, rebounding from recent declines caused by reduced safe-haven demand. The Fed’s rate pause and Powell’s cautious tone supported prices, which are sensitive to interest rate expectations.

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