Global economic uncertainty due to US tariffs, potential slowdown in growth, cautious investor sentiment

From Yahoo Finance: 2025-05-18 15:36:00

Reports this week will yield insights into global economies amid trade disruptions. Chinese data on Monday, followed by PMIs on Thursday, will gauge the impact of US tariffs. G7 finance ministers may provide further analysis. European Commission and ECB will release economic forecasts. PMI numbers already show a slowdown in global growth.

S&P Global’s PMI numbers for May will offer an initial view of economic activity in various countries. Uncertainty remains high due to tariffs imposed by the US and China, which are expected to dampen global growth. US importers are currently paying tariffs with little change in import-price indexes.

US economic calendar lightens up, with key data releases including jobless claims, manufacturing, and service provider surveys. National Association of Realtors data expected to show modest increase in home sales. Investors await speeches by Federal Reserve policymakers for rate cut clues. Moody’s downgrading US credit assessment.

Australia’s Reserve Bank expected to cut rates by 25 basis points. Japan to release major economic indicators midweek. Asian countries to report trade figures post-Trump’s tariffs. Europe to focus on UK inflation and retail sales. ECB to release financial stability review and rate decision account. African countries to hold central bank meetings.

Chile, Brazil, Argentina, Uruguay, Paraguay, and Mexico to release economic data. US and China tariff truce to impact trade figures in Asia. ECB President Christine Lagarde optimistic about Europe’s economy. Central bank decisions expected in Nigeria, Angola, Iceland, Egypt, and Zambia. Latin America’s economic performance to be closely monitored.

Read more: Midpoint of Trump Tariff Hiatus to Reveal Increasingly Unsettled World