Midday Market Roundup for Friday, April 18, 2025

Good afternoon. Here are the top four global financial and economic topics shaping markets at midday, Friday, April 18, 2025:

1. Global Growth Forecasts Cut as Tariff Uncertainty Lingers

S&P Global has revised its global real GDP growth forecast for 2025 from 2.5% to 2.2%, citing persistent trade tensions and widespread corrections in equity prices following the announcement of reciprocal tariffs earlier this month. While markets rebounded after a temporary pause in tariff escalation, risk aversion remains high, and market conditions are choppy. S&P Global notes that inflation forecasts for 2025 and 2026 have also been revised upward, primarily due to shifts in U.S. trade policy and rising tariffs, which are expected to further pressure core goods prices in major economies (S&P Global).

2. China Prepares for Monetary Easing as Tariffs Bite

According to Reuters, all eyes are on China as the People’s Bank of China is set to announce its benchmark lending rates, with analysts predicting the first rate cut since October 2024. This move, which is expected to have a significant impact on the global economic landscape, comes as China faces significant U.S. tariffs—now exceeding 100%—and slowing growth. Financial institutions have lowered their growth projections for China, and further monetary easing is expected to help buffer the economy against ongoing trade shocks (Reuters).

3. U.S. Markets Show Resilience Despite Volatility

The NYSE MAC Desk reports that U.S. equities are trading higher heading into the long holiday weekend, with the S&P 500 and Russell 2000 up about 1%. As Brent crude approaches $68 per barrel, energy stocks lead while technology shares lag. Treasury yields have increased slightly, and the U.S. Dollar Index is steady. Earnings remain generally positive, with limited downside guidance despite the uncertain environment. However, some sectors, such as healthcare and housing, are under pressure due to mixed earnings results (NYSE MAC Desk).

4. IMF and World Bank Spring Meetings Focus on Trade and Growth

Finance ministers and central bankers worldwide have gathered in Washington for the Spring Meetings of the International Monetary Fund and World Bank. According to Reuters, trade disputes and a pessimistic global growth outlook dominate discussions. The IMF’s global economic forecast, released this week, highlights the risks of extensive U.S. tariffs and urges Washington and its trade partners to engage constructively to alleviate tensions (Reuters).

Sources:

• S&P Global: https://www.spglobal.com/market-intelligence/en/news-insights/research/global-economic-outlook-april-2025
• Reuters: https://www.reuters.com/business/take-five/global-markets-themes-graphic-2025-04-17/
• NYSE MAC Desk: https://e.nyse.com/mac-desk-midday-market-update
• Reuters (IMF/World Bank): https://www.reuters.com/business/take-five/global-markets-themes-graphic-2025-04-17/

Disclosure:
The information provided in this article, “The Impact of Political Events on Market Performance,” is for informational purposes only and does not constitute investment, legal, or financial advice. The content is not intended as a recommendation to buy or sell any security or investment product. Readers should consult with qualified financial, legal, and tax advisors before making any investment decisions.

The views and opinions expressed are based on sources believed to be reliable, including Brookings Institution Economic Studies, but their accuracy or completeness is not guaranteed. Any forward-looking statements are based on current expectations and projections, which may change without notice.

Investing involves risk, including the potential loss of principal. Past performance does not guarantee future results. The strategies or investments discussed may not be suitable for all investors.

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