Global Equities Tick Higher as U.S. Bond Yields Ease Ahead of Housing Data

Markets showed signs of renewed optimism on Friday, May 23, 2025, as global equities nudged higher and U.S. bond yields moderated, setting the stage for cautious risk-taking ahead of the New Home Sales report, due at 16:00 CET. Investors are closely watching the housing market as a barometer of U.S. economic resilience amid fluctuating interest rate expectations.

Wall Street ended Thursday on a mixed note, with select mega-cap stocks drawing investor attention. Apple shares fell 0.36%, slightly underperforming the market. However, Evercore ISI reiterated its “Outperform” rating and maintained a $250.00 price target, citing strong brand value and upcoming product refreshes as medium-term catalysts.

In contrast, Tesla surged 1.9%, outperforming the broader market. Analysts at Piper Sandler reaffirmed their “Overweight” stance and upheld a $400.00 price target, citing improved delivery momentum and long-term growth prospects in EV markets across Europe and Asia.

Forex Market Overview:

• EUR/USD up 0.2%, benefiting from slight dollar weakness.
• GBP/USD gained 0.3% as UK retail sentiment improved.
• USD/JPY dropped 0.5%, with the yen finding strength on risk-off flows in Asia.
• AUD/USD jumped 0.6%, supported by positive commodity outlook and regional risk appetite.

Stock Index Performance:

• Dow Jones Industrial Average (DJI): +0.1%
• Nikkei 225: +0.4%
• Hang Seng Index (HK50): +0.2%
• ASX 200 (AU200): +0.2%

Gains were supported by a more favourable interest rate environment and growing investor confidence that U.S. Federal Reserve policy tightening may be nearing its peak.

Commodities & Gold:

• Brent Crude (#C-BRENT): +0.1%
• WTI Oil: +0.1%, buoyed by a slight improvement in global demand forecasts.
• Gold (XAU/USD): +0.2%, continuing its steady climb as bond yields ease and inflation expectations remain anchored.

Outlook:

Investors are proceeding with guarded optimism. Friday’s New Home Sales report will be closely examined for signs of cooling or resilience in the U.S. housing sector, a key indicator that could influence expectations around future rate cuts. As AI-driven tech stocks and EV leaders continue to shape sentiment, market volatility may persist in the short term.

Disclaimer:
This content is for informational purposes only and does not constitute financial or investment advice. Always consult a licensed financial advisor before making investment decisions.