Crypto Market Live Today: BTC, ETH, BNB, XRP, Contract, While CORE, WAL, FLR Surge

Cryptocurrency

Summary:

The start of the fresh week trade remains sluggish after experiencing a notable pullback during the weekend. Bitcoin price slashed below $94,000 and seems to be ready for a quick bounce, which may shake up the markets. As Bitcoin consolidated, the top 10 tokens like Ethereum, XRP, BinanceCoin, Cardano, etc., also followed a similar trend and remained glued below their respective resistance levels. Meanwhile, some altcoins display strength, indicating a notable shift in the market sentiment.

Top Gainers for the Day

As Bitcoin began to consolidate, the top altcoins also followed the same trend; meanwhile, some of them worked hard to maintain a strong ascending trend. Core (CORE) price remained the top gainer with nearly 13% profits. With over 133 integrations, the CORE platform is swelling every day. The next is Walrus (WAL), which has surged by over 10% gains after being the top loser during the past weekend. Meanwhile, Flare (FLR), Pudgy Penguins (PENGU), & Fartcoin (FARTCOIN) attracted decent gains, followed by Bonk (BONK) & Sui (SUI).

Top Loser for the Day

The markets are experiencing a corrective phase, where the bears have begun to extract profits from the token that remained bullish in the past few days. With an over 8% plunge, Ethereum Name Service (ENS) price leads, followed by Sonic (prev. FTM S) and BitTorrent (BTT) with a 3% to 4% pullback. However, the loss remained restrictive between 2% and 3% with the other altcoins like Stacks (STX), Render (RNDR), Near Protocol (NEAR), Cardano (ADA) and Ethereum Classic (ETC). This suggests the overall market sentiment remains bullish, and hence, a strong rebound could be imminent.

Regardless of the profit and losses, the community sentiments are extremely bullish on Kaspa (KAS), Cardano (ADA), Pi (PI) and XRP (XRP). The investors foresee a strong ascending trend for these altcoins, probably when Bitcoin's price displays some strength and revives a rise back above $96,000. Therefore, the crypto market prediction for today remains neutral, with the top token maintaining a range-bound consolidation, compelling the top altcoins to follow the trend, while some may thrive with decent gains.

Source: CryptoSlate

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China–U.S. Trade War

Deflation Deepens as China Redirects U.S.-Bound Exports Domestically

China is grappling with a deepening deflationary threat as the government encourages exporters—stranded by the collapse of U.S. demand due to tariffs as high as 145%—to shift their goods into the domestic market. While this redirection may temporarily ease supply gluts, it is unleashing steep price cuts, eroding profit margins, and escalating competitive pressures among domestic firms.

According to Barclays economist Yingke Zhou, this shift is sparking an aggressive price war as retailers like JD.com commit billions to absorb tariff-hit inventory. The resulting deflationary pressure is evident: consumer prices fell in both February and March, while the Producer Price Index dropped for the 29th consecutive month, down 2.5% in March and potentially falling 2.8% in April.

Economic Indicators Signal Increasing Stress

Goldman Sachs now forecasts China’s consumer inflation to fall to 0% in 2025, with wholesale prices declining 1.6%—a stark signal of waning pricing power across sectors. The producer deflation aligns with Morgan Stanley’s outlook that the second quarter will bear the brunt of tariff damage, as exporters suspend shipments and slash output.

The oversupply created by vanishing U.S. orders is compounding China’s structural problem of industrial overcapacity. “Prices will need to fall for domestic and other foreign buyers to absorb the excess,” said Goldman’s chief China economist Shan Hui, warning that manufacturers cannot quickly adjust capacity to account for lost U.S. demand.

Employment Faces Blow as Firms Fight to Survive

More than 16 million jobs are tied to goods destined for the U.S., and many of these roles are now at risk. Small and mid-sized exporters, once buoyed by the “de minimis” exemption that allowed duty-free shipments under $800 to the U.S., are now confronting insolvency. That rule was repealed by the Trump administration, leaving companies like Shein and Temu exposed to full tariffs and cash-flow disruptions.

According to Eurasia Group’s Wang Dan, urban unemployment could average 5.7% in 2025—above the official 5.5% target—as job losses mount in coastal regions reliant on exports. Delayed payments, return surges, and razor-thin margins are already forcing some firms to shut down or sell at a loss just to keep operations running.

Beijing Reluctant to Launch Stimulus Despite Mounting RisksDespite growing signs of economic distress, Chinese authorities are reluctant to deploy large-scale stimulus. Analysts suggest the government sees deflation not as a crisis, but as a transitional buffer allowing households to save during broader structural reforms.

This restrained policy posture comes amid simultaneous challenges from a depressed property market, which has undermined household wealth and fiscal revenue. Together, these dual drags threaten to sap momentum from China’s modest 4% GDP growth outlook—already short of the official 5% target.

Nomura’s Ting Lu warns of a “worse-than-expected demand shock,” particularly if trade tensions persist. Although Chinese officials remain optimistic that tariffs will be resolved diplomatically, no timetable has been offered, and talks remain in a tentative phase.

Structural Challenges Threaten Recovery Path

Peking University’s Justin Yifu Lin argues that while China retains industrial advantages, the U.S. will struggle to reshore manufacturing within a year or two, meaning higher prices will burden American consumers before benefits materialize. Meanwhile, China’s challenge lies in managing overproduction and restoring domestic confidence.

In essence, Beijing’s stopgap measure—turning exporters inward—is compounding a new crisis: entrenched deflation, weakening job security, and demand-side fragility. Without stronger domestic consumption or a breakthrough in U.S.-China trade talks, China risks slipping into a deflationary trap with long-term economic consequences.

Source: CNBC

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Economic

Inflation Stubbornly Above Target as ECB Eyes June Rate Cut

The European Central Bank (ECB) faces mounting pressure to recalibrate its monetary strategy as Eurozone inflation remains persistently above target. According to newly released data from Eurostat, the region’s consumer price index in April held steady at 2.2% year-on-year, marking the sixth consecutive month inflation has exceeded the ECB’s 2% target. This has raised uncertainty over the timing and scale of future interest rate adjustments, even as markets largely price in a 0.25 percentage point rate cut at the June policy meeting.

What complicates matters further is the steady rise in core inflation—excluding energy and food—which accelerated to 2.7% from 2.4% in March. The figure not only surpassed economists’ consensus of 2.5% but also signals that underlying price pressures are re-emerging. More striking is the spike in service inflation, which climbed to 3.9% from 3.5%, suggesting that pricing power in labor-intensive sectors remains robust.

Temporary Drivers vs Persistent Trends

While the uptick in service inflation may appear alarming, analysts at Capital Economics argue that it likely reflects seasonal demand spikes during the Easter holiday period, particularly in travel, dining, and hospitality. Therefore, it may not be a sustained inflationary trend that warrants policy tightening. This view is crucial for maintaining expectations of continued monetary easing despite headline inflation resilience.

Still, the challenge for the ECB lies in distinguishing temporary effects from structural inflation dynamics. The institution has to navigate carefully between overreacting to seasonal volatility and underestimating sticky service-sector price growth, which could complicate its inflation control objectives over the medium term.

Markets Still Expect Rate Easing Despite Data Surprises

Despite the inflation surprise, financial markets remain confident in the ECB’s dovish trajectory. Futures trading now reflects an 85% probability of a 0.25% rate cut in June, with at least two or three additional cuts priced in for the remainder of the year. This sentiment is anchored by the view that inflation will gradually normalize and that economic growth in the Eurozone remains too fragile to withstand prolonged restrictive monetary policy.

Supporting this outlook, German two-year bond yields—often viewed as a barometer for short-term interest rate expectations—rose only marginally by 0.04 percentage points to 1.74% following the data release. This muted reaction underscores market confidence in an upcoming rate reduction cycle.

Growth Momentum Fragile Amid Global Trade Tensions

The ECB’s policy dilemma is further complicated by external risks, particularly U.S. tariff policies that threaten to disrupt trade flows and weigh on regional growth. Last month, the central bank initiated its first rate cut since the pandemic, lowering the benchmark rate to 2.25% as a preemptive response to these emerging trade tensions. This shift reflected not just concerns over inflation but also a broader strategy to shield the Eurozone economy from the knock-on effects of geopolitical and policy-driven shocks.

Preliminary GDP data for the first quarter of 2025 showed a modest 0.4% growth—an improvement over earlier expectations but still insufficient to confidently absorb further external shocks. This performance affirms the ECB’s cautious stance, highlighting the need to support demand while remaining alert to inflationary risks.

As June approaches, the ECB must carefully weigh its next steps. While market pricing leans toward further easing, inflation indicators—particularly in the services sector—suggest that the path to price stability remains uneven. The real test will be whether the ECB can balance short-term growth support with medium-term credibility on inflation control. With U.S. tariffs adding a new layer of uncertainty, policymakers will need to signal their intentions with clarity, while maintaining flexibility in the face of evolving global dynamics.

Source: Reuters

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Economic

Vietnam Raises Alarm Over Tariff Fallout

Vietnamese Prime Minister Pham Minh Chinh issued a strong rebuke on Monday against the sweeping "reciprocal" tariffs enacted by U.S. President Donald Trump, warning that these measures are creating significant turbulence for the global economy. Addressing the National Assembly in Hanoi, Chinh pointed to a 46% tariff on Vietnamese exports as an immediate threat to both domestic resilience and broader international trade networks.

Vietnam, which has long relied on stable global demand and open trade to fuel its rapid economic development, is now confronting what Chinh described as a “challenging and complicated situation.” The tariffs, he warned, are not just bilateral penalties but carry wider implications for regional supply chains and multilateral trade cooperation.

Global Implications of U.S. Protectionism

While the full enforcement of these tariffs has been deferred globally until July, the Prime Minister emphasized that the psychological and operational effects are already unfolding. Exporters are facing heightened uncertainty, and foreign investment prospects are beginning to show signs of hesitation as trade risks escalate.

The situation reflects an emerging pattern where trade-dependent economies are becoming collateral damage in broader geopolitical maneuvers. The U.S. tariff structure under the Trump administration has aimed to address perceived imbalances, but in doing so, it has also triggered instability in supply chains that rely on efficiency, cost optimization, and predictability.

Diplomatic Response and Negotiation Outlook

Despite the headwinds, Chinh signaled cautious optimism. He noted that Vietnam has maintained composure and strategic patience in its response, opting for diplomacy and negotiation over retaliation. Notably, Vietnam is among the first nations with which the U.S. has agreed to initiate formal tariff discussions, suggesting a potential opening for compromise.

“We have stayed calm and courageous and taken several appropriate measures,” Chinh told the assembly. His remarks underline Vietnam’s attempt to position itself as a cooperative yet resilient partner, seeking dialogue rather than escalation. The Vietnamese government has reportedly made meaningful progress in its consultations with the Trump administration, although the details of any concessions or adjustments remain undisclosed.

Vietnam’s Economic Dilemma: Integration Meets Isolation RiskThe contradiction facing Vietnam is sharp. As a country deeply integrated into global manufacturing chains—particularly in electronics, textiles, and intermediate goods—its growth model depends on open markets. The tariffs, if sustained, could erode Vietnam’s competitiveness, particularly if firms choose to shift production elsewhere to avoid levies.

The timing is particularly sensitive. Vietnam’s economy has faced mounting pressures from softening global demand, logistical bottlenecks, and now, tariff unpredictability. Moreover, potential shifts in investor confidence could have long-term consequences, especially as Vietnam seeks to scale up high-tech manufacturing and move up the value chain.

A Test of Vietnam’s Strategic Agility

Vietnam’s diplomatic and economic response to the Trump tariffs will serve as a litmus test for its broader strategy of maintaining balanced relations with major powers while preserving export competitiveness. Although the willingness of the U.S. to enter negotiations offers a temporary reprieve, the larger issue of trade weaponization and shifting global supply chains will likely persist well beyond this tariff cycle.

As Vietnam navigates these challenges, its ability to secure trade concessions without compromising long-term development goals will determine how effectively it can insulate itself from external shocks in an increasingly protectionist world.

Source: Reuters

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Forex

Economic

Taiwan Dollar’s Rally Spurs Regional Currency Strength

The U.S. dollar opened the week under pressure as the Taiwanese dollar skyrocketed more than 3% on Monday, building on Friday’s record 4.5% surge to hit 29.618 per dollar—its strongest level in two years. This abrupt move has spilled over to other regional currencies, fuelling talk that some Asian governments may be tacitly allowing their currencies to appreciate in hopes of softening the tone of U.S. trade negotiations.

Although Taiwan’s central bank denied that the U.S. has requested such currency adjustments as a bargaining tool, market participants have begun pricing in a broader pattern. China’s yuan followed suit, appreciating to 7.1980 per dollar—its strongest level in nearly six months—on speculation that Beijing could allow a stronger exchange rate as a goodwill gesture amid tense trade talks.

U.S. Trade Policy Fuels Uncertainty and Currency Volatility

Despite the upward momentum in Asian currencies, a concrete breakthrough in trade talks remains elusive. China’s Commerce Ministry confirmed it is evaluating a U.S. proposal to resume negotiations following the imposition of 145% tariffs by President Donald Trump, but meaningful dialogue still seems distant. In a televised interview aired Sunday, Trump reaffirmed that China “wants to make a deal,” yet he provided no timeline or policy clarity.

These inconsistencies have left the dollar exposed. Recent remarks by Trump calling for lower interest rates and disparaging Federal Reserve Chair Jerome Powell—whom he called a “stiff”—have renewed concerns over the Fed’s independence. While Trump stated he would not attempt to remove Powell, markets remain wary of political interference.

Federal Reserve in Focus, But Rate Cut Expectations Decline

With the Federal Reserve set to meet this Wednesday, the market overwhelmingly expects no change in rates. However, stronger-than-expected U.S. labor data last week has further dampened the chances of a rate cut in June. According to JPMorgan’s Michael Feroli, the Fed is now more likely to stay on hold, given the dual risk of inflation persistence and trade-induced volatility.

Market-based probabilities of a rate cut in June have dropped from 64% a month ago to 37% currently, with institutions like Goldman Sachs and Barclays pushing their expected cut to July. Despite this, the dollar has failed to sustain momentum from the positive payrolls report, highlighting the extent to which tariff anxiety continues to weigh on investor confidence.

Currency Markets React to Uncertainty and Geopolitical Shifts

Broader currency movements reflect this uncertainty. The euro edged up to $1.1333, recovering from last week’s low, while the dollar index dipped to 99.717. The yen also gained, with the dollar slipping 0.4% to 144.21 yen, after Japanese Finance Minister Katsunobu Kato downplayed earlier comments suggesting Japan might reduce its U.S. Treasury holdings amid trade disputes.

Investor positioning further reveals fragility in sentiment. Speculative short positions on the dollar have increased, suggesting broader bearishness, but this also raises the risk of sudden reversals if unexpected bullish news emerges. Monday’s release of the U.S. ISM services data could be a turning point; a weak reading would reinforce fears of a downturn, while a strong result might offer temporary support for the greenback.

Pound, Aussie, and Scandi Currencies Also in Spotlight

Sterling is likely to face its most significant test at the upcoming Bank of England meeting, where a 25-basis-point rate cut to 4.25% is widely expected. Markets are looking for signals about whether the BoE will open the door to back-to-back cuts, potentially bringing rates down to 3.50% by year-end.

Elsewhere, the Australian dollar continued to firm, bolstered by the Albanese government’s reelection and improved global risk appetite. The currency touched $0.6466—its highest in five months—after the U.S. payroll data sparked a mild rally in risk assets.

Dollar’s Slide Underscores Erosion in Market Confidence

The weakening dollar reflects more than just technical shifts in exchange rates; it signals a deeper unease about the U.S.'s shifting trade policies, political pressure on the Fed, and unpredictability in global economic coordination. The surge in the Taiwan dollar and accompanying regional appreciation may mark a new phase in trade diplomacy—where currencies are wielded not just as monetary tools but as instruments of negotiation.

Until clearer signals emerge from the Fed and the White House, dollar sentiment is likely to remain fragile, driven by geopolitical posturing and speculative expectations more than economic fundamentals.

Sourcee: Reuters

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Forex

Economic

Rupee Strengthens Amid Global Volatility

India’s currency closed last Friday at 84.58 against the U.S. dollar, gaining 1% for the week as foreign portfolio inflows and appreciation in other Asian currencies lent support. Despite briefly breaching the 84 level, importer hedging and suspected central bank interventions curbed further gains. According to traders, the USD/INR pair has likely found a short-term floor around 83.80, with a broad expected range between 83.80 and 85. The Reserve Bank of India is anticipated to intervene again if the rupee strengthens below 84, aiming to accumulate more foreign reserves, which recently hit a six-month high of $688 billion.

This mild appreciation in the rupee contrasts with a broader strengthening of the U.S. dollar after strong nonfarm payroll data reaffirmed the resilience of the American labor market, despite tariff-driven uncertainties. Still, the rupee’s performance this week will largely hinge on the Federal Reserve’s May 7 policy meeting, particularly Jerome Powell’s commentary on inflation, employment, and trade exposure.

Bond Yields Decline for Seventh Week on RBI Actions

India’s 10-year benchmark bond yield ended last week at 6.3538%, down 1 basis point for the week and extending its decline to seven consecutive weeks—amounting to a cumulative 35 basis points. Market participants expect the yield to remain between 6.30% and 6.40% in the coming days.

The driving factor behind this trend has been the RBI’s aggressive liquidity injections. This week alone, the central bank plans to buy government bonds worth 750 billion rupees ($8.88 billion) through Open Market Operations (OMOs), followed by two additional rounds of 250 billion rupees each later this month. These purchases are part of a broader 2025 policy strategy, with the RBI having already acquired 3.65 trillion rupees worth of bonds through OMOs and 388 billion rupees from the secondary market since January.

This sustained liquidity support is likely to facilitate better transmission of lower interest rates into the real economy. As Radhika Rao of DBS Bank notes, these moves also serve as a buffer against potential liquidity tightening that could occur due to upcoming dollar-forward contract maturities held by the RBI over the next three months.

Interest Rate Swaps Signal Market CautionIndia’s overnight index swap (OIS) market may remain quiet early in the week, with reactions expected after the Fed policy statement. Over the past five weeks, key swap rates—particularly the one-year, two-year, and five-year tenors—have declined sharply, pricing in expectations of further global and domestic rate moderation. This trajectory reflects alignment with the RBI’s easing bias and market speculation around longer-term accommodative policy in response to weak global demand.

Macroeconomic and Policy Catalysts Ahead

Investors are also monitoring upcoming macro releases and central bank actions. Domestically, the April HSBC services and composite PMI on May 6 will shed light on India’s post-fiscal-year service sector performance. Globally, the Bank of England is expected to hold rates steady on May 8, while a flurry of U.S. data—including ISM non-manufacturing PMI, trade balance figures, and initial jobless claims—will feed into sentiment on the dollar and emerging markets.

The Indian rupee enters the week with cautious optimism, buoyed by regional inflows and central bank defense. Meanwhile, bond yields continue to respond positively to RBI’s deepening monetary support. However, global volatility—especially from trade-related disruptions and U.S. policy signals—will remain key variables.

Should Powell’s comments lean dovish or hint at downside risks from tariffs and slowing global trade, it could reinforce current trends in the rupee and bond markets. Conversely, a more hawkish tone could limit gains and reintroduce volatility.

Source: Reuters

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FastBull Featured

Daily News

[Quick Facts]

1. Trump says he has no intention of removing Powell, suggesting Vance and Rubio as potential presidential successors.

2. Over 15,000 USDA employees accept Trump Administration's Voluntary Resignation offer.

3. Major oil producers to exceed production hike targets for the second consecutive month.

4. U.S. military launches airstrikes across Yemen, injuring civilians.

5. EU Steel Exports to U.S. Plunge by 1 million Tons, €2 Billion Loss Linked to U.S. Steel-Aluminum Tariffs.

6. U.S.-Ukraine Mineral Deal Signed: Early Glimpse of American Profit Strategy Emerges.

7. South Korean Auto Exports to the U.S. Plummet.

8. Trump’s Budget Slashes Domestic Spending by 23%, Pushes Defense Outlays to Record $1 Trillion.

9. ECB Vice President Hints at Further Rate Cuts to Counter U.S. Tariff Impact.

10. April Nonfarm payrolls Beat Expectations, but Outlook Remains Cloudy.

[News Details]

Trump says he has no intention of removing Powell, suggesting Vance and Rubio as potential presidential successors

While reiterating his criticism of Federal Reserve Chair Jerome Powell for slow interest rate cuts, U.S. President Donald Trump emphasized he has no plans to dismiss the central bank chief. "Why would I do that?" Trump said. "I get to replace the person in another short period of time." Powell's term is set to end in May 2026. When asked again on Friday whether he intends to seek re-election, Trump replied, "It was too early to make a decision." He also named Vice President J.D. Vance and Secretary of State Marco Rubio as potential successors. He said he wants to serve these four years well and then hand over power to a great Republican—preferably one who can continue the work.

Over 15,000 USDA employees accept Trump Administration's Voluntary Resignation offer

A briefing document from the U.S. Department of Agriculture (USDA) to congressional staff, dated May 4 local time, revealed that more than 15,000 USDA employees have accepted a voluntary separation incentive program offered by the Trump administration. This figure represents roughly 15% of the department's total workforce. The initiative, part of the administration's broader effort to reduce the size of the federal workforce, provided eligible employees with several months' worth of salary and benefits in exchange for voluntary resignation.

Major oil producers to exceed production hike targets for the second consecutive month

The Organization of the Petroleum Exporting Countries (OPEC) announced on the 3rd that eight OPEC and non-OPEC oil-producing nations have agreed to increase production by 411,000 barrels per day starting in June. This marks the second consecutive month these countries will exceed market expectations in boosting output. Representatives from Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman convened an online meeting to assess global oil market conditions and prospects.

According to the statement, the decision to adjust production was driven by robust market fundamentals and historically low oil inventories. The group pledged to maintain flexibility in adjusting the pace of production increases based on market dynamics to ensure stability. These eight nations had initially agreed to voluntary production cuts of 2.2 million barrels per day in November 2023, with the measures repeatedly extended, most recently until the end of March 2025. In March 2024, they announced plans to gradually phase out these voluntary cuts, beginning with incremental production hikes on April 1.

U.S. military launches airstrikes across Yemen, injuring civilians

According to a report by Yemen’s Houthi-controlled Al-Masirah TV on May 5 (local time), U.S. forces conducted six airstrikes targeting the Bani Matar district in southern Sanaa province. Additionally, U.S. strikes hit the Harith, Shu'ub, and Attan areas of Sanaa. The Houthi health authority stated that a U.S. attack on Forty Street in Shu'ub wounded 14 civilians and damaged multiple shops. Further strikes included two airstrikes in Marib province and three in Al-Jawf province, according to the report.

EU Steel Exports to U.S. Plunge by 1 million Tons, €2 Billion Loss Linked to U.S. Steel-Aluminum Tariffs

Since the 25% U.S. tariffs on all steel and aluminum imports took effect on March 12th, the European Union's steel sector has faced severe setbacks. American consumers, meanwhile, are also forced to foot the bill for the policy. Axel Eggert, Director General of the European Steel Association (EUROFER), revealed that steel exports to the U.S. have dropped by 1 million tons, incurring losses of approximately €2 billion The tariffs are expected to significantly impact U.S. steel consumers, as domestic producers currently lack the capacity to supply a wide range of specialized steel grades, relying heavily on EU imports. If U.S. industries cannot source these products domestically, their procurement costs could surge by 25%.

U.S.-Ukraine Mineral Deal signed: early glimpse of American profit strategy emerges

The U.S. State Department announced on May 2nd its approval of a $310.5 million sale of F-16 fighter jet components, along with training and maintenance services, to Ukraine. According to U.S. media reports, the transaction's costs will be classified as a U.S. contribution to a joint mineral development fund established under the recently signed U.S.-Ukraine mineral cooperation agreement. Analysts note that as details of the F-16-related deals surface, the underlying dynamics of the mineral pact are coming into sharper focus.

Under the current agreement, Ukraine's demands for U.S. security assurances have evolved into a more tangible arrangement: leveraging future mineral revenues to secure advanced U.S. weaponry, including F-16s. In essence, the U.S. is exchanging immediate arms transfers for potential long-term gains from Ukrainian mineral resources. While this quid pro quo is now explicit, implementation remains in its early stages. Key uncertainties linger, including whether the deal will materialize fully, what hurdles-such as logistical challenges or Russian countermeasures-might disrupt its execution, and how these factors will reshape the specifics of U.S.-Ukraine cooperation under the "mineral-for-weapons" framework.

South Korean auto exports to the U.S. plummet

The U.S. government's imposition of tariffs on imported automotive components has cast a shadow over sales prospects for South Korean parts manufacturers. The U.S. is South Korea's largest export market for auto parts, with shipments totaling $13.5 billion in 2023, according to data from the Korea International Trade Association (KITA). Meanwhile, the share of South Korean auto parts exports destined for the U.S. has risen steadily, reaching 36.5% of total exports as of 2024. Hyundai and Kia vehicles assembled in the U.S. rely heavily on imported South Korean components, with local procurement accounting for less than 20% of parts. For some popular models, South Korean-made parts make up as much as 90% of components. Latest figures released on May 2nd show that South Korea’s auto exports to the U.S. during the first 25 days of April fell 16.6% year-on-year, driven by tariffs on finished vehicles. The new levies on auto parts, however, are poised to deliver another blow to South Korea's automotive supply chain.

Trump's budget slashes domestic spending by 23%, pushes defense outlays to record $1 Trillion

In his fiscal year 2026 budget proposal, U.S. President Donald Trump has called on Congress to impose steep cuts to domestic agency funding while boosting military spending. The plan seeks to reduce non-defense discretionary spending to $557 billion for FY2026—a $163 billion cut from current levels. Meanwhile, national security spending would surge to a historic $1.01 trillion, up 13% from the previous year. The record defense budget prioritizes funding for the Golden Dome missile defense program, shipbuilding, nuclear modernization, and border security, alongside a 3.8% pay raise for military personnel. On the domestic front, Trump's proposal targets deep cuts to environmental and renewable energy initiatives, as well as programs addressing racial disparities. The Environmental Protection Agency (EPA) and Department of Energy face particularly sharp reductions, while $15 billion in renewable energy project funding under President Joe Biden's signature infrastructure bill would be axed.

ECB Vice President hints at further rate cuts to counter U.S. Tariff impact

European Central Bank (ECB) Vice President Luis de Guindos expressed optimism about the current rate-cutting cycle in an interview published Saturday by Austria's Die Presse. When asked how long the ECB would continue lowering interest rates, de Guindos stated, "This will depend on how inflation develops. But we can be optimistic." He added that inflation is projected to align closely with the ECB's 2% target by year-end, according to the bank's latest forecasts.

April nonfarm payrolls beat expectations, but outlook remains cloudy

The U.S. Bureau of Labor Statistics (BLS) reported on Friday (May 2) that nonfarm payrolls rose by 177,000 in April, while March’s figure was revised down to 185,000 from an initially reported 228,000. Though the stronger-than-expected job growth eased concerns about the immediate economic impact of the White House's tariff hikes, the report did not fully reflect the fallout from President Trump's "Liberation Day" tariffs announced on April 2. Economists warn that job gains will likely slow in the coming months once the full impact of punitive tariffs is reflected in the data.

The employment figures may lead the Federal Reserve to adopt a more cautious stance on rate cuts this year. Faced with stagflation risks fueled by tariffs, the Fed is conducting a real-time assessment of whether stagnation or inflation poses a greater threat to the economic outlook. The labor market's resilience could temporarily reassure policymakers that the economy is not deteriorating sharply, buying time to gauge tariffs’ actual inflationary effects.

Following the data release, interest rate futures markets pared bets on a Fed rate cut as early as June, pricing in a 35.6% chance of a June reduction—down from roughly 58% late Thursday. Overall, markets now expect about 80 basis points of cuts (three 25-basis-point moves) in 2024, compared with prior projections of nearly 100 basis points earlier in the week.