🧖♂️🧖♀️ Eurozone Inflation Cools Below 2%
Hala,
Vienna’s University of Applied Arts just admitted an AI student called “Flynn” into its digital art program.(1) 🎨🤖 Flynn will attend classes, receive critiques, and earn grades alongside humans. Talk about the ultimate paint-by-numbers—just hope it doesn’t crash at deadline! 😅
Nasdaq-listed VivoPower wants to drop $121 million on XRP (a digital asset created by Ripple Labs, primarily designed to facilitate fast and low-cost international payments) while China’s Webus is lining up a $300 million reserve—both moves aimed at turning XRP into a treasury darling. It’s a bold leap from “cross-border payments” to “corporate balance sheet asset,” echoing Bitcoin’sMicroStrategy moment. XRP is suddenly looking less like a token and more like a CFO’s newest pet project.
XRP’s on a four-day winning streak, but don’t break out the champagne just yet. Derivatives data from Coinglass shows long positions are getting liquidated faster than you can say “bull trap.” Overleveraged bets, shaky sentiment, and a market that refuses to trend—it's a masterclass in how not to trade momentum.
As if things weren’t spicy enough, the SEC vs. Ripple saga lumbers on. New filings are once again poking at the security status of XRP, adding legal whiplash to an already volatile market. Institutions may see long-term potential, but for now, traders would be wise to tread lightly—or at least keep the aspirin close.
Stock Market Update
🏄♀️📈 Wall Street rallied on Tuesday, riding trade deal whispers and Nvidia’s AI-powered rocket boost. The S&P 500 added 0.58% to 5,970.37, the Dow rose 0.51% to 42,519.64, and the Nasdaq 100 climbed 0.79% to 21,662.58. Nvidia jumped nearly 3%, reclaiming its market cap crown from Microsoft, while Broadcom and Micron Technology soared, too.(2) Chip stocks? More like rocket chips. 🚀🔌
🏦 🤑 In the UAE, Dubai rose 0.68% to 5,521.85 thanks to DIB and Emirates NBD, while Abu Dhabi added 0.46% to 9,691.49, driven by ADIB and FAB.(3) 💸↗️
🎶🔥 Sauna’s Over, Inflation’s Cooling Down!
Eurozone inflation just stepped out of the sauna, pores unclogged and towels in hand—May’s headline rate dipped to 1.9%, below expectations and its coolest sweat since September 2024.(4) Core prices? They’re sweating less too, sliding from 2.7% to 2.4%. Now traders are eyeing European Central Bank (ECB) President Christine Lagarde to bring extra towels—and maybe a 25 bp rate cut to 2.0% on Thursday. 🧖♂️🧖♀️
💧💼 Heat Check: Inflation’s Vital Signs
Headline inflation: eased to 1.9% in May, down from 2.2% in April and beneath the anticipated 2%.
Core inflation (excluding food and energy): slowed to 2.4% from 2.7%, beating the 2.5% forecast. On the month, core prices crept up just 0.1%.
Food, alcohol & tobacco: remained the steadiest dripper at +3.3% year-on-year (April: +3.0%), while services cooled sharply to +3.2% from +4.0%.
Overall monthly inflation: flat in May after April’s 0.6% rise, signaling a clear slowdown in momentum.
Eurozone unemployment: eased to 6.2% in May (from 6.3% in March and 6.4% a year earlier).
The euro: slipped to $1.1400 as markets fully priced in a 25 bp cut. 💶⬇️
🌡️🚿 Time for a Cool-Down Session in Frankfurt?
With inflation stepping off the heat bench and below the ECB’s 2% target for the first time since September, investors are penciling in that June rate trim like a spa appointment. Blended trade frictions and softer demand have unclogged broader price pressures, paving the way for a 2.0% deposit rate—its coolest level since January 2023. While some members still feel the burn (hello, Estonia and Slovakia), the eurozone as a whole is ready for a post-sauna cooldown. 🥶🛁
Closer to Home
🎯 Emirates NBD Capital KSA just got the CMA's nod to launch its “ENBDC Saudi Equity Freestyle Fund,” diving deeper into the kingdom’s booming investment scene.(5) Saudi stocks? Definitely on their playlist. 🎧
📈 Abu Dhabi’s international financial center ADGM kicked off 2025 strong: assets under management surged 33%, licenses jumped 67%, and entities hit 2,781, driven by Reem Island expansion and the lure of English-law clarity.(6) ⚖️
📦 In IPO news, Saudi’s Alkhaldi Logistics ditched its Nomu IPO after Yaqeen Capital called the offering “incomplete” and “void.”. The 1.05M-share plan at SAR 44–47? Off the table. Refunds expected by June 4.(7) #IPOIntercepted 🚫
What Else Is Trending
🚘 Automaker giant Ford races ahead in May! U.S. sales jumped 16.3% YoY, driven by gains in gas and hybrid models, as employee pricing kept buyers in gear despite rising tariffs.(8)Ford’s keeping the engine purring. 💨
🛢️ Meanwhile, oil prices rallied 2% to a two-week high on Tuesday as tensions with Russia and Iran kept sanctions simmering. Brent closed at $65.63, and WTI at $63.41.(9) ⛽
🥇 Lastly, spot gold knocked off its near four-week high, down 0.9% to $3,352.30, as the U.S. dollar flexed and markets braced for a U.S. President Donald Trump and Chinese leader Xi Jinping plot twist.(10) 📖
💬Quote of the Day
“Good things come to those who sweat.”— Anonymous
Sources:(1) (4) Euronews, (2) (8) CNBC, (3) (5) (7) Zawya, (6) Khaleej Times, (9) (10) Reuters