Markets were jolted this week as a flurry of geopolitical developments, central bank decisions, and corporate forecasts signaled a shifting global economic landscape.

Trump’s Trade Push and Inflation Concerns

Former President Donald Trump announced what he called a “comprehensive” trade pact between the US and UK following high-level talks. While details remain limited, the announcement arrives amid rising concern from investors, with Pimco warning markets may be underestimating Trump’s resolve on tariffs. Goldman Sachs, meanwhile, raised its U.S. inflation forecast as the dollar continues to slide—underscoring the growing complexity of global trade and monetary policy.

Central Banks Enter New Territory

In a surprise move, the Bank of England cut interest rates and sharply downgraded its growth outlook, joining a growing list of central banks adjusting course. Sweden’s Riksbank hinted at further rate cuts amid increasing economic uncertainty, while Norway held rates at a 16-year high but signaled future easing. In Asia, the Bank of Japan remains divided on how U.S. policies might impact its own rate path, and China is reportedly considering a structural overhaul of its housing market to rein in risky pre-sales.

Europe and Emerging Markets Brace for Tariffs

German industrial production ticked up in March, but fresh tariff threats loom. In response, Siemens Energy and Rheinmetall projected limited near-term tariff impact, though Infineon cut guidance anticipating future headwinds. Meanwhile, Ukraine is reportedly exploring a shift from the U.S. dollar to the euro in a strategic realignment driven by ongoing geopolitical tensions.

UK Housing Market Wobbles as Fiscal Leeway Shrinks

UK economic anxieties are deepening, with estate agents reporting the weakest housing sales gauge since 2023. At the same time, Chancellor Rachel Reeves is expected to breach the government’s fiscal rule by £57 billion ahead of the next budget, raising concerns over future borrowing and spending plans.

Corporate Earnings Paint a Mixed Picture

On the corporate front, performance was a mixed bag. ConocoPhillips reported stronger-than-expected Q1 earnings as its CFO prepares to step down. In the aviation sector, Boeing proposed a 2027 delivery date for the new Air Force One jets, while Maersk stuck to its full-year guidance despite cautioning on global container demand.

Tech and manufacturing updates also drew investor attention. Infineon revised its outlook downward due to tariff pressures, and Arm’s chip provider issued lower sales forecasts while withholding full-year guidance. On the brighter side, Nintendo projected higher profits, buoyed by excitement surrounding the next-generation Switch console.

Commodities and Consumer Goods Round Out the Week

Goldman Sachs raised its copper price forecast for Q2 and Q3, citing strong demand. Meanwhile, AB InBev, maker of Budweiser, beat profit expectations as global beer sales remained resilient.

From trade pacts to rate cuts and tariff fears, this week underscored the volatile intersection of politics, policy, and profit. With inflation expectations climbing and central banks pivoting, markets appear poised for further turbulence in the months ahead.