In the UK, stocks rose as investors reacted to the U.S. trade deal and the Bank of England's recent rate cut, which was unexpectedly divisive among policymakers.

Despite recent market volatility, Wall Street experienced a rally, with the dollar and U.S. Treasury yields reaching their highest levels in weeks.

On May 8, 2025, U.S. President Donald Trump and UK Prime Minister Keir Starmer announced a limited trade agreement that retains Trump's 10% tariffs on British exports but expands agricultural access and reduces tariffs on car exports.

Recent criticism from President Trump and Vice President JD Vance targeted Fed Chair Jerome Powell for not lowering interest rates.

A $25 billion auction of 30-year Treasury bonds showed the lowest demand since July 2024, indicating market concerns.

This weekend, trade talks between the U.S. and China will begin in Switzerland, with significant attention on the outcomes.

China's exports in April exceeded expectations, partly due to demand from countries taking advantage of a 90-day tariff pause, despite a 21% drop in exports to the U.S.

Chinese officials are increasingly concerned about the economic impact of U.S. tariffs and the risk of isolation as they negotiate with Washington.

Global markets are hopeful for a gradual rollback of U.S. tariffs, which may extend the recovery from April's trade shock.

The Federal Reserve's officials are scheduled to speak today following their decision to hold policy rates steady, with April's inflation updates due next week.