Bonds & Stocks
The WTO cut its forecast for this year, saying trade would decline by 0.2% in 2025, almost three percentage points lower than it would have been without the US-led trade war. The S&P 500 fell 1% while the yield on 10-year Treasuries hovered around 4.33%. Swaps traders were still pricing in at least three rate cuts for this year.
Economy
US retail sales rose substantially in March on a jump in car purchases and other goods such as electronics, suggesting consumers were scrambling to get ahead of tariffs. The value of retail purchases, not adjusted for inflation, increased 1.4%, the most in over two years, Commerce Department data showed Wednesday. Excluding autos, sales climbed 0.5%.
World
The EU and US made scant progress bridging trade differences this week as officials from President Donald Trump’s administration indicated that the bulk of the US tariffs imposed on the bloc will not be removed. The EU’s trade chief, Maros Sefcovic, left the meeting with little clarity on the US stance, struggling to determine the American side’s aims.