Economic Updates
1. UK Inflation Hits 14-Month High
Inflation in the UK rose sharply in April, reaching its highest level in over a year, a development that could prompt the Bank of England to delay any further interest rate cuts.
- Annual consumer inflation hit 3.5%, up from 2.6% in March, and well above the Bank of England’s medium-term target of 2.0%.
- Monthly inflation surged to 1.2%, compared to just 0.3% in March.
- Analysts had forecast a rise of 3.3% year-on-year and 1.1% month-on-month.
- Core inflation (excluding volatile energy and food prices) climbed 1.4% monthly and 3.8% annually, up from 3.4% in the previous month.
2. U.S. Markets Close Lower Amid Sector Weakness
U.S. stocks closed lower on Tuesday, dragged down by losses in technology, communications, oil, and natural gas sectors.
- The Dow Jones Industrial Average fell 0.27%
- The S&P 500 dropped 0.39%
- The Nasdaq Composite slid 0.38%
Commodity & Crypto Highlights
1. Bitcoin Nears All-Time High After U.S. Senate Progress
Bitcoin rallied Wednesday, nearing its all-time high, after the U.S. Senate passed the Genis Bill, a major step toward regulating stablecoins and overcoming previous legislative hurdles.
- The bill is expected to be voted on later this week before heading to President Donald Trump for approval.
- The progress is seen as a major win for the crypto industry, suggesting a more favorable regulatory environment.
- Bitcoin hovered near its four-month high and was close to breaching its all-time high of $109,288, reached in January.
2. China’s Gold Imports Hit Highest Level in a Year
Despite record-high prices, China’s gold imports reached a 12-month peak last month, driven by increased demand for the precious metal.
- The People’s Bank of China eased restrictions to allow more gold into the country.
- Even though gold prices fell in May due to easing trade tensions, central bank buying to diversify away from the U.S. dollar is expected to support prices moving forward.
