On May 19th local time, US President Trump and Russian President Putin held a two-hour telephone conversation and held intensive consultations on a ceasefire in the Russia-Ukraine conflict. After the call, Trump said Russia and Ukraine would "immediately begin negotiations aimed at ending the war" and revealed that the Vatican had agreed to host the talks.

On May 19th local time, the U.S. House of Representatives Budget Committee passed the American Economic Recovery and Growth Act proposed by the Trump administration with 22 votes in favor and 19 votes against. The $4.2 trillion tax cut plan aims to extend corporate tax incentives in the 2017 Tax Cuts and Jobs Act and add new personal income tax cuts for the middle class.

On May 15 local time, US President Trump once again proposed a plan to turn the Gaza Strip into a "free zone" at a business roundtable meeting held in Qatar, declaring that "there is nothing to save in Gaza" and advocating that the United States take over the region and lead the reconstruction, while requiring Gaza residents to relocate to neighboring countries such as Egypt and Jordan. Since the plan was first proposed in January 2025, it has repeatedly triggered strong opposition from Arab countries and the international community, and has been accused of "forcibly depriving the Palestinian people of their rights."

In the early Asian session on Thursday (May 15), the market held its breath waiting for the US April retail sales data (commonly known as the "horror data") to be released at 20:30. The current market expects the data to grow by only 0.3% on a monthly basis, but many economists warn that due to the impact of tariff policies, declining consumer confidence and inflation stickiness, the actual data may be lower than expected, which may trigger sharp fluctuations in financial markets.

The U.S. CPI data for April was unexpectedly lower than expected, triggering strong market expectations of a shift in the Federal Reserve's monetary policy. Data showed that CPI rose 2.3% year-on-year in April, the lowest since February 2021, and the core CPI rose 2.8% year-on-year, in line with expectations. Affected by this, the market is betting that the Federal Reserve may launch its first interest rate cut this year in September, with a total rate cut of about 56 basis points for the whole year.

Indian Prime Minister Narendra Modi delivered a televised speech on the morning of May 13, issuing the strongest warning in history against Pakistan: "If India is attacked by terrorists again, we will strike with precision at terrorist hideouts under the cover of nuclear blackmail and will not be deterred by any threats." This statement directly refers to the latest conflict on the Line of Control in Kashmir. On May 12, the Indian army claimed to have shot down two Pakistani drones, while Pakistan shelled the Indian-controlled area, killing three civilians, breaking the ceasefire agreement brokered by Trump.

On May 12, local time, China and the United States issued the "China-US Joint Statement on Economic and Trade Relations" in Geneva, Switzerland, marking substantial progress in the tariff game that has lasted for two years. According to the statement, the United States will reduce tariffs on China in stages. The first batch of adjustments will involve agricultural products, medical equipment and other fields, with tariff reductions of 30%-50%. However, tariffs on core technology products such as transistors and new energy vehicles will remain high.

U.S. President Trump once again blasted Federal Reserve Chairman Powell on social media on Thursday (May 9), calling him "stupid and incompetent" and accusing the Fed of being "slow to act" and failing to cut interest rates in a timely manner to cope with downward economic pressure.

In the early morning of May 7th, Beijing time, India launched a cross-border air strike on Pakistan, claiming it was in retaliation for the terrorist attack in Kashmir. Pakistan then shot down five Indian fighter jets (including three Rafale), killing 26 civilians.