Top overnight news
The Trump administration is planning to tell NATO allies this week that it will shrink the pool of military capabilities that the U.S. would have available to assist the alliance's European nations in a major crisis, three sources familiar with the matter said. BBG
Two giant Chinese tankers laden with around 4 million barrels of oil exited the strait on Wednesday, the latest signal that Iran is willing to ease its blockade for countries it considers friendly. Iran had announced last week, while Trump was in Beijing for a summit, that it had reached an agreement to ease rules for Chinese ships. RTRS
India is preparing to send vessels through the Strait of Hormuz to load energy cargoes from Middle East suppliers, the first time since the Iran conflict began. BBG
Xi Jinping called for “a comprehensive ceasefire” in the Middle East as he opened talks with Vladimir Putin in Beijing. BBG
US President Trump signed a fintech Executive Order to protect the US financial system from illicit activity, while it was reported that the White House plans to release an Executive Order on cybersecurity and AI safety as soon as this week, which seeks early government access to advanced models.
Indonesia’s central bank snapped a long-running pause as it delivered its first rate hike in over two years to guard against inflation and steady the rupiah. Bank Indonesia on Wednesday raised its benchmark seven-day reverse repo rate by 50 basis points to 5.25%, coming off the sidelines after holding steady since it eased policy settings in September last year. The move surprised markets. WSJ
British inflation cooled by more than expected in April but the slowdown did little to mask a tough outlook for households, with global costs from the Iran war set to hit them harder later this year. Consumer prices rose by an annual 2.8%, down from March's annual inflation rate of 3.3%, official data showed, helped by smaller increases in household energy and other regulated utility bills than in April 2025, and by measures to lower energy bills introduced by finance minister Rachel Reeves. RTRS
The EU finalized the text of its long-delayed US trade deal after months of negotiations, clearing a major hurdle to ratifying the pact before President Donald Trump’s threatened deadline to impose higher tariffs. The EU agreed to scrap tariffs on US industrial goods in exchange for a 15% cap on EU export levies. BBG
Japan’s 20-year bond auction drew strong demand, helping calm a recent selloff in longer-dated JGBs. PM Sanae Takaichi said an extra budget would avoid large bond sales. BBG
China banned Nvidia’s US export-friendly RTX 5090D V2 gaming chip last Friday. FT
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