International News 27 May 2025
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Oil prices stabilise after Trump extends deadline for negotiations with EU
Oil prices stabilised on Monday as US President Donald Trump extended trade talks with the European Union, alleviating concerns about potential US tariffs affecting fuel demand. The price of Brent crude futures fell to US$64.61 per barrel, while the price of US West Texas Intermediate crude dropped to US$61.35. The market initially reacted positively to Trump's decision to delay trade talks until July and suspend tariffs, leading to global market gains and a stronger euro. UBS analyst Giovanni Staunovo has stated that these developments are indicative of a supportive environment for crude oil prices. Please note that thin trading volumes were observed due to the US Memorial Day holiday. In light of recent military actions in Ukraine, Trump has indicated a potential for the implementation of new sanctions on Russia. Despite the volatile geopolitical landscape, both Brent and WTI crude oil prices experienced an uptick by Wednesday.
Ahead of tariffs, Thailand's exports rose 10.2% in April 2025
Thailand's exports in April 2025 saw a year-on-year increase of 10.2%, surpassing initial estimations while displaying slower growth compared to the previous month. The Ministry of Commerce has issued a warning regarding the possibility of US tariffs being imposed in the latter half of the year. Poonpong Naiyanapakorn, Head of Thailand's Trade Policy and Strategy Office, has stated that exports, vital for Thailand's economy, are expected to continue growing in the current quarter. In April, exports to the US increased by 23.8%, while those to China rose by 3.2%. The highest increase in exports was recorded in the computer and parts sector, with a 75% rise, while exports of agricultural products fell by 19.6%, with rice exports decreasing by 37.3%. Concerns have been raised regarding the potential impact of new tariffs from the US, which are due to be implemented following the expiration of the current tariff moratorium in July.
Asian markets stabilise, euro gains after Trump delays 50% import tariffs on EU
On Monday, Asian stock markets demonstrated stability, and the euro experienced significant gains following US President Donald Trump's decision to postpone the imposition of 50% tariffs on goods from the European Union until 9 July. This move, in response to a request from European Commission President Ursula von der Leyen, offers a temporary solution to the challenges posed by Trump's trade policies. The extension provides an opportunity for both parties to engage in negotiations for a mutually beneficial trade deal. Trump's decision to delay tariffs, after previously planning to implement them on 1 June, provided a sense of certainty to financial markets amid concerns over the impact on global economic growth. Despite this respite, analysts caution that the unpredictable nature of the Trump administration's trade policies continues to weaken investor confidence, leading many to divert their investments away from the US towards Asian and European markets.