Fed Meeting Sparks Division as Markets Brace for Possible Rate Cut 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
U.S. Stocks Rise as Cooler Inflation Boosts Hopes for Fed Rate Cut 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
European Oil & Gas Stocks Face 2026 With Cautious Outlook Amid Valuation Pressure 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
U.S. Stocks End Week Higher as Markets Anticipate Fed Rate Cut 
China’s services sector expanded slightly faster in May, with the Caixin/S&P Global Services PMI rising to 51.1 from 50.7 in April, signaling continued growth. The uptick was supported by stronger domestic new orders, even as new export orders declined amid persistent uncertainty over U.S. tariffs.
The Caixin survey, which tracks smaller and export-driven firms, echoed official PMI data showing services activity at 50.2. Analysts, however, warn that external demand risks remain due to ongoing trade tensions with the U.S., despite a temporary 90-day pause on new tariffs.
While the services sector showed resilience, a drop in manufacturing output led the broader Caixin China General Composite PMI to fall to 49.6 from 51.1—its first contraction since December 2022. The divergence highlights continued pressure on China’s industrial base despite efforts to stimulate domestic demand.
Input costs rose at their fastest pace since October 2024, driven by higher wages and purchase prices, but output charges continued to decline, squeezing profit margins. Employment remained stable overall, with some firms cutting costs through layoffs while others expanded staff to meet demand.
The central bank has eased monetary policy and lowered deposit rate ceilings to encourage spending, but economists say the impact of earlier stimulus measures remains limited. Caixin economist Wang Zhe emphasized that boosting domestic demand depends on improving household incomes amid growing external risks.
Despite current challenges, sentiment in the services sector remains optimistic, with businesses expecting recovery as tariff-related headwinds ease. However, weak export demand and persistent cost pressures pose ongoing risks to sustained growth.
