Market flash: The bond market could spoil the equity market party
23-05-2025
• Moody's withdrew the US's AAA rating due to rising debt, leading to an increase in US Treasury yields.
• A budget compromise proposed by the Trump administration was narrowly passed in the House of Representatives, including tax cuts as well as reductions in healthcare spending and green subsidies, but it still needs Senate approval, promising lengthy discussions.
• In Europe, the trade threat could substantially hamper growth, while in Asia, China and Japan are already facing economic challenges, prompting authorities to implement monetary easing measures.