For the first time since late March, VIX for under 18 years old
The CBOE Volatility Index (VIX) dropped again on Tuesday, falling below 18 for the first time since March 27. This index, often seen as a gauge of market fear, was last quoted at around 17.82. Earlier in April, it had surged to 60.13 as concerns about escalating trade tensions were rising among investors, sparking fears of a potential recession.
White House announces $600 billion investment from Saudi Arabia into the US
On Tuesday, the Trump administration revealed that Saudi Arabia has committed to invest $600 billion in the United States, primarily targeting sectors like technology and defense. The White House described the agreement as a significant and transformative collaboration for both nations, hinting at a promising new era in US-Saudi relations.
S&P 500 opens near the flatline
The S&P 500 started Tuesday’s trading close to unchanged. Investors seemed to have moderated their enthusiasm for riskier assets after a robust rally at the beginning of the week. The broad index ticked up 0.1%, while the Nasdaq Composite increased by 0.4%. The Dow Jones Industrial Average gained 198 points, or 0.4%.
In April, US inflation hit 2.3%, less than expected
April saw inflation come in a bit lower than anticipated. As tariffs introduced by President Trump started to take effect amidst a slowing US economy, the consumer price index edged up by 0.2%, resulting in an annual inflation rate of 2.3%, according to the Bureau of Labor Statistics. These monthly figures align with Dow Jones predictions, though they fell slightly short of the yearly estimates.
The UK Pension Fund has pledged to invest 5% of its assets in the UK private market
By 2030, 17 UK Pension Funds have made an agreement to invest at least 5% of their default defined contribution (DC) funds in the domestic market. In the UK, DC pensions consist of retirement savings plans funded by individual and sometimes employer contributions. These contributions are managed by fund managers until retirement. The signatories of the Mansion House Accord committed to investing at least 10% in the private market by the end of the decade, with half of that specifically directed toward the UK market. The private market encompasses private equity, property, infrastructure, and credit. This investment is contingent on having a “sufficient supply of investment assets suitable for the provider,” as stated in a document reviewed by CNBC.
UK unemployment rate is the highest since 2021
The UK’s unemployment rate climbed to 4.5% during the January-March period, reaching its highest level since August 2021. Job vacancies dropped by 42,000 between February and April, marking the 34th consecutive quarter of decline. According to Sanjay Raja, the chief economist at Deutsche Bank, the labor market shows clear signs of stress ahead of increased minimum wage and higher National Insurance Contributions.
Bayer stock will rise 9% after falling below revenue expectations
Shares of Bayer, the German chemical giant, jumped 9% following a better-than-expected performance in its first quarter results. The company, a significant player in the pharmaceutical and biomedical sectors, reported sales of €13.74 billion ($15.27 billion) for the quarter. Bayer also highlighted an adjusted profit of €40.9 billion. The management suggested they might mitigate the impacts of tariffs through various measures, which analysts view positively, although they did caution that underlying outcomes remain weak with significant revenue drops and high legal liabilities.
SoftBank Vision Funds will be an annual loss
SoftBank’s Vision Fund reported a loss for the fiscal year ending in March. The fund indicated a profit of 434.9 billion yen, down 40% from the previous year’s 720.43 billion yen. Overall, the Vision Fund segment sustained a loss of 115.02 billion yen ($777.7 million), contrasting with a profit of 128.2 billion yen from last year.
German reinsurer has won a $1.9 billion hit from LA wildfires
A German reinsurer reported a nearly $2 billion revenue hit in the first quarter due to the Los Angeles wildfires. Munich Re, the world’s largest reinsurer, previously projected claimed costs from the wildfires at around €1.1 billion ($1.2 billion) for the first quarter of 2025. Reinsurers typically offer insurance to major providers that deal directly with clients. Usually, reinsurance kicks in after a significant loss threshold is crossed. The catastrophic wildfires in Los Angeles contributed to this outcome, with losses being notably above expected budgets—particularly driven by California circumstances. Hanover Re also reported significant losses from the wildfires, with net losses at €631.4 million.
European Market: Opening Calls are as follows
European markets are expected to open mixed on Tuesday. The UK FTSE 100 is projected to drop 4 points to 8,591, while Germany’s index is anticipated to rise by 23 points to 23,569. The French CAC 40 is expected to be slightly lower, and in Italy, the FTSE MIB is forecasted to decrease by 30 points. SoftBank, Tata Motors, Metro Bank, and Bayer will report earnings, while UK retail sales and unemployment figures will also be released, alongside a Zew economic sentiment survey for Germany.
