Highlights

• China’s PBOC cuts reserve requirement ratio by 0.5% and policy rates by 10 bps, injecting ¥1 trillion ($139B) liquidity; additional targeted rate cuts for tech, SMEs, and green projects 1.
• US-China trade talks to resume in Geneva on May 9; first high-level engagement since 2023 tariff war, with both sides signaling cautious optimism 4.
• Brent crude rallies 3% on renewed US-China trade dialogue, reduced US output, and stronger European/Chinese demand 3.
• EU considers €100B retaliation package, including tariffs on Boeing jets, escalating transatlantic trade tensions; Boeing stock down 0.8% 2.
• Disney beats Q2 estimates, raises full-year EPS guidance, and sees strong streaming growth; stock surges 7.7% 5.
• Uber Q1 revenue misses but EPS beats; stock drops ~5% as bookings and guidance underwhelm 6.
• Novo Nordisk trims 2025 outlook on weaker Wegovy sales but beats on Ozempic; shares rise up to 6% as guidance cut seen as priced in 9.
• Ethereum activates major Pectra upgrade, improving scalability and Layer-2 efficiency; exchanges resume ETH deposits post-upgrade 11.
• Tesla China April deliveries fall 6% YoY, with sharp drop from March; BYD outpaces Tesla in China NEV sales 8.
• Orsted cancels 2.4 GW Hornsea 4 offshore wind project, citing costs; UK clean energy targets at risk 15.
• OpenAI to halve Microsoft revenue share by 2030 as it restructures; projects “hundreds of billions” in revenue 7.
• China’s forex reserves rise to $3.282T, gold holdings up for sixth straight month 17.

Commentary

Markets open with a cautiously constructive tone as China’s central bank unleashes a fresh wave of monetary easing, cutting both the RRR and key policy rates while targeting support for tech, SMEs, and green sectors. The ¥1 trillion liquidity injection, paired with additional regulatory measures, signals Beijing’s commitment to countering domestic weakness and tariff-driven headwinds 114. This dovish stance, alongside China’s rising forex and gold reserves, should underpin risk sentiment in Asia and offer a tailwind to global equities and commodities, particularly as investors look for signs of stabilization in China’s economy 17.

Renewed US-China trade talks in Geneva and the resumption of formal negotiations are being interpreted as a de-escalation signal, helping to drive Brent crude up 3% amid hopes for improved global demand and reduced supply risks 34. Energy equities and cyclical sectors could see support, while the dollar may face modest pressure as risk appetite improves. However, the EU’s threat of a €100B retaliation package targeting Boeing jets underscores that trade frictions remain a live risk, especially for US industrials and transatlantic exporters 2.

In corporate earnings, Disney ’s robust beat and raised guidance contrast with Uber ’s mixed quarter, highlighting a bifurcation in tech and consumer names 56. Disney’s streaming and theme park strength could buoy media and leisure stocks, while Uber’s revenue miss and tepid guidance may weigh on the broader gig economy and mobility sector. Novo Nordisk ’s guidance cut, already priced in, and strong Ozempic sales reinforce the resilience of select pharma names despite competitive headwinds and shifting market dynamics 9.

Crypto traders will note Ethereum’s successful Pectra upgrade, which boosts scalability and Layer-2 efficiency, potentially catalyzing renewed interest in ETH and related DeFi assets 11. Meanwhile, Tesla ’s China delivery slump and Orsted’s wind project cancellation highlight ongoing challenges in the EV and renewables space, suggesting selectivity remains key in these high-beta sectors 815.

Traders should monitor headlines from Geneva for any signs of breakthrough or escalation in US-China talks, as well as further developments on EU-US trade tensions 24. The PBOC’s policy moves may drive flows into emerging markets and commodities, while continued volatility in energy and select tech names is likely 13. Watch for sector rotation as investors digest the divergent signals from earnings, geopolitics, and central bank policy.