Tentative signs of improvement have surfaced in China’s industrial sector. Data from the National Bureau of Statistics showed that industrial profits rose 1.4% year-on-year between January and April, which is an improvement from the 0.8% growth recorded in the first quarter.
The beginning of 2025 has brought a sense of uncertainty for many. Developments such as new trade tariffs under Donald Trump and the rise in National Insurance have placed added pressure on businesses, with some facing difficult decisions including the possibility of redundancies.
Recent market turbulence has been unsettling for many, especially those considering investing.
Recent market turbulence has been unsettling for many, especially for those planning to retire.
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UK inflation came in higher than expected for April, with the Consumer Price Index (CPI) rising to 3.5%, up from the 2.6% rise in prices in March. Core inflation—which strips out the more volatile categories of energy, food, alcohol, and tobacco—also climbed, reaching 3.8% in the 12 months to April, compared to 3.4% in the previous period.
As you can see from the accompanying table it was a broadly positive week for financial markets. Stocks rallied as optimism round global trade helped lift sentiment and push indexes sharply higher. A breakthrough in trade talks between the U.S. and China over the weekend set the tone early, with all major indexes posting strong gains.
The United States and China announced a breakthrough in trade talks on Monday, agreeing to pause most of the tariffs imposed on each other’s products for a period of 90 days. As part of the deal, both nations will significantly reduce their mutual tariffs— the US will cut tariffs on Chinese goods from 145% to 30%, while China will cut tariffs on American imports from 125% to 10%.
Global markets offered a mixed but ultimately encouraging picture this week, as investors digested key developments across trade, and central bank policy. At the heart of market attention were the latest interest rate decisions from the Federal Reserve and the Bank of England.
On Monday, the Caixin PMI revealed a slowdown in activity in the Chinese economy, with the index slipping to 50.7 in April from 51.9 in March. Although this marked the 28th straight month of expansion, it was the weakest reading since September 2024, reflecting growing uncertainty in the service sector.
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