USA

Year to Date (YTD)

Commentary: Following a turbulent April, the Trump administration opted for better dialogue through new trade deals and paused a number of stringent tariffs enacted earlier on. A de-escalation in the previously harsher tone led to the US and China significantly reducing their tariff rates and putting most tariffs on pause for 90 days. Inflation figures were also better than expected, with the latest headline inflation number out at just 2.3% in April, the lowest rate since February 2021. The US economy also added 177K jobs, beating expectations. Equity markets cheered on the positive news with a sharp recovery following April’s upheaval. The S&P500 turned positive YTD with the tech-focused just 1% down YTD after briefly touching bear market territory.

Europe & UK

Year to Date (YTD)

Commentary: Europe’s economy grew stronger than expected in the first three months of the year as the “Trump tariffs” kept on putting economic uncertainty on future prospects. The GDP in the euro area grew by 0.4% in the first quarter, improving on 0.2% growth in the last part of 2024. Eurozone inflation remained constant at 2.2% in April, falling short of the anticipated 2.1%, with core inflation increasing to 2.7%. The Euro area unemployment rate remained constant at 6.2%. Early on in May, the German Parliament managed to form a government through a coalition after a minor blip in the first round of voting. Despite the elevated uncertainty and multiple geopolitical issues, the Eurostoxx 50 is up by more than 10% YTD.

Malta

Year to Date (YTD)

Commentary: The Central Bank of Malta reported slower but still above-average GDP growth for the Maltese economy mainly driven by domestic demand. Business sentiment improved slightly, while economic uncertainty rose due to global factors. Labour market conditions remained strong, with a low unemployment rate and rising job vacancies. Inflation eased, with headline and core rates below euro area levels. The NSO reported how the Maltese Government debt for 2024 amounted to €10,648 million translating to a debt-to-GDP ratio of 47%. Elsewhere, the NSO reported that the number of approved new dwellings declined by 17% compared to the same quarter of 2024. Local bank BOV announced a profit before tax of €67 million for the first quarter of 2025. The Maltex is up 1.2% YTD.