Economic Updates 

1. UK Inflation Hits 14-Month High 
Inflation in the UK rose sharply in April, reaching its highest level in over a year, a development that could prompt the Bank of England to delay any further interest rate cuts. 

  • Annual consumer inflation hit 3.5%, up from 2.6% in March, and well above the Bank of England’s medium-term target of 2.0%. 
  • Monthly inflation surged to 1.2%, compared to just 0.3% in March. 
  • Analysts had forecast a rise of 3.3% year-on-year and 1.1% month-on-month. 
  • Core inflation (excluding volatile energy and food prices) climbed 1.4% monthly and 3.8% annually, up from 3.4% in the previous month. 

2. U.S. Markets Close Lower Amid Sector Weakness 
U.S. stocks closed lower on Tuesday, dragged down by losses in technology, communications, oil, and natural gas sectors. 

  • The Dow Jones Industrial Average fell 0.27% 
  • The S&P 500 dropped 0.39% 
  • The Nasdaq Composite slid 0.38% 

Commodity & Crypto Highlights 

1. Bitcoin Nears All-Time High After U.S. Senate Progress 
Bitcoin rallied Wednesday, nearing its all-time high, after the U.S. Senate passed the Genis Bill, a major step toward regulating stablecoins and overcoming previous legislative hurdles. 

  • The bill is expected to be voted on later this week before heading to President Donald Trump for approval. 
  • The progress is seen as a major win for the crypto industry, suggesting a more favorable regulatory environment. 
  • Bitcoin hovered near its four-month high and was close to breaching its all-time high of $109,288, reached in January. 

2. China’s Gold Imports Hit Highest Level in a Year 
Despite record-high prices, China’s gold imports reached a 12-month peak last month, driven by increased demand for the precious metal. 

  • The People’s Bank of China eased restrictions to allow more gold into the country. 
  • Even though gold prices fell in May due to easing trade tensions, central bank buying to diversify away from the U.S. dollar is expected to support prices moving forward.