The past week delivered multiple warning signals from the global economy: a US-China summit that ended with smiles but little substance, the most severe global bond selloff in years, Federal Reserve minutes signalling a potential interest rate hike, and a Middle East war that has dragged on far longer than markets anticipated.At home, Thailand offered good news as first-quarter economic growth beat expectations, though critics still have reservations about the government's 400-billion-baht stimulus package.
The Trump-Xi summit in Beijing resulted in a "constructive strategic stability" framework, China ordering 200 Boeing aircraft and committing to buy US farm goods and energy, and hints about establishing a joint trade and investment committee.
Yet markets reacted negatively, and understandably so. No meaningful deal emerged on rare earths or artificial intelligence, while Taiwan tensions remain unresolved. InnovestX assesses the summit as a tactical de-escalation, not a strategic resolution. Stress has been reduced, but the technology war continues.
Global bond markets have been hit by the worst simultaneous selloff in years. US consumer inflation in April came in at 3.8%, while producer prices accelerated to their fastest pace since 2022, pushing the 10-year US Treasury yield to 4.59%.
