📈 Global market update – Monday 19th May 2025
- NexxtGen Markets
- 4 days ago
- 3 min read
Good morning, here's the latest Global Financial Markets news from Steve Halls at NexxtGen Markets here in the City of London...
🔻 Moody’s downgrades US credit rating
Moody’s has officially downgraded the US credit rating from Aaa to Aa1, following in the footsteps of Fitch and S&P. The downgrade stems from rising debt, high interest burdens, and political uncertainty around fiscal policy.
🟠 Bond yields surged, with the 30-year US Treasury topping 5%🟠 The US dollar weakened, boosting the British pound🟠 Global stockmarkets opened in the red, with the FTSE 100 and Stoxx 600 both slipping
Investor takeaway: This downgrade may push up borrowing costs for the US government and ripple through global financial markets.
⚔️ Weight-loss wars: Eli Lilly overtakes Novo Nordisk
Eli Lilly has overtaken Novo Nordisk in US weight-loss drug sales. Its flagship product, Zepbound, now outsells Wegovy due to stronger trial data and a faster launch.
Novo has also faced setbacks:
CEO Lars Fruergaard Jørgensen’s resignation
Uncertainty around its next-generation drug CagriSema
Supply chain issues limiting output
The result? Lilly’s stock is surging, while Novo’s market cap has pulled back sharply.
🔄 Equities bounce back, but caution returns
Despite the downgrade news, last week saw a sharp rally:
But this week opens with renewed caution. All eyes are now on inflation data, monetary policy, and a critical earnings slate.
🔍 Key events to watch:
Major earnings due from Home Depot, Snowflake, Intuit, Palo Alto Networks, and Workday.
🚀 Fresh all-time highs in focus
Momentum has returned to several high-quality names, many of which are now printing new 52-week or all-time highs:
This reflects growing investor appetite for quality growth and defensives.
💎 Richemont shines on luxury jewellery demand
Richemont posted an 11% YoY surge in jewellery sales, led by strong performance at Cartier and Van Cleef & Arpels.
While watch sales slowed, ultra-wealthy clients continue spending at the high end.
Luxury remains a split market: aspirational demand is cooling, but high-end assets are still in favour.
🔧 Copper surges as AI and EV demand accelerates
Copper prices jumped again as demand soars across:
Green energy infrastructure
Traders are also digesting news of tariff changes and a stockpile rush in the US ahead of expected price increases.
UK-based investors can access copper via:
Broader ETFs with exposure to industrial metals
📊 Key earnings to watch this week
🛠️ Home Depot – Tuesday
EPS: $3.59 (expected)
Revenue: $39.1bn
Watch for updates on full-year guidance and macro demand in the DIY sector
🔐 Palo Alto Networks – Tuesday
Major player in cybersecurity
Investors want clarity on AI tools, margins, and customer growth
🧠 Snowflake – Wednesday
Revenue expected to grow 18.4%
Key test for cloud and data infrastructure names
📒 Intuit – Thursday
Post-tax season strength anticipated
Focus on growth in subscriptions and AI tools for small businesses
🧾 Workday – Friday
Closely watched by enterprise software investors
Guidance and retention metrics will be crucial
🧠 Summary
Markets are at a delicate juncture. The Moody’s downgrade may prove a temporary headwind, but it comes amid a busy week of inflation data and major earnings. Quality stocks continue to break higher, but traders remain cautious.
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