The S&P 500’s tech sector index climbed 1% Friday to log a nearly 4% weekly gain after some of America’s biggest tech companies reported better-than-expected earnings. Several of those companies also stood by their AI ambitions, sustaining optimism about the emerging technology even as worries about the economy in the face of shifting tariff policies and tightening trade restrictions loomed.
Amazon (AMZN) and Apple (AAPL) followed with earnings that topped Street estimates after the closing bell Thursday. Worries about tariffs weighed on enthusiasm for the stocks, with Amazon shares little changed Friday and Apple dropping close to 4% after CEO Tim Cook warned the iPhone maker would take a $900 million hit from tariffs in the current quarter.
The big tech earnings parade isn’t over yet: The last of the Magnificent Seven to report this season is Nvidia (NVDA), which is scheduled to release its quarterly financial results May 28.
According to the Department of Education, 5 million borrowers have defaulted on their federal student loans, and 4 million are delinquent.
The Department of Education plans to resume wage garnishment on defaulted borrowers this summer, making it harder for borrowers to make other payments.
Collections and lowered credit scores will make taking out new debt harder and more expensive for defaulted student loan borrowers.
The millions of student loan borrowers struggling to make payments could soon face a predicament as collection efforts resume.
The Department of Education said 5 million borrowers have defaulted on their federal student loans, and expects 4 million more to default in the next few months. Starting May 5, the department plans to resume the collection of defaulted loans, eventually leading to involuntary wage garnishment for some borrowers.
“I’m not against paying my loans back, I took them out and went to school. But without affordable repayment options or programs, it just seems really suffocating for a large amount of borrowers,” one user with student loans posted on Reddit.
Collections Will Likely Make it Harder for Borrowers to Pay Other Debts
Borrowers who have not paid for at least 270 days could see up to 15% of their income, tax refund, or federal benefits withheld and sent to their loan holder starting this summer. And that could have repercussions on other parts of student loan borrowers’ financial lives.
American consumers are already struggling to pay their debt. In a recent study by digital finance company Achieve, one in three consumers said their debt is unmanageable, and 36% said they can’t pay all their bills on time.
“Many borrowers may have taken on more debt than they can manage during the moratorium, and student debt may now sit lower in the payment hierarchy,” wrote Shandor Whitcher, a Moody’s Analytics economist, in a blog post.
Paying off additional bills can be harder for student loan borrowers who have other debt and have part of their income cut from wage garnishments. According to Achieve, 37% of student loan borrowers who reported missing a payment on any type of debt said they did so because they ran out of money.
Borrowers with lower credit scores typically have more debt and are more likely to say their debt is unmanageable than those with higher scores, according to Achieve. In addition, missed payments stay on a borrower’s report for seven years, leading to reduced credit limits, increased interest rates on new loans, and less access to credit.
“While [the average credit score fell] only two points right now, it’s going to continue to get worse,” said Jack Wallace, director of government and lender relations at Yrefy, a private student loan company.
Defaulted borrowers can consolidate their loans or enter a rehabilitation program to avoid the adverse effects of wage garnishments and collections. Delinquent borrowers have a few more options before they are put into default status, including signing up for lower payments under an income-driven repayment plan or applying for forbearance.
Editor’s note: “Brace Yourself for More Stock Market Turmoil Ahead” was previously published with the title “Painful Stock Market Chaos: You Ain’t Seen Nothin’ Yet” in April 2025. It has since been updated to include the most relevant information available.
If you’ve felt confused, frustrated, or downright sick to your stomach watching the stock market this year, you’re not alone. This has been one of the ugliest, most volatile, and whiplash-inducing starts to a year that Wall Street has ever seen…
Indeed, since January, we’ve endured:
A 10% correction in the S&P 500 within 20 trading days (between February and March)
An even more violent 10% drop in just two days in early April – something that’s only happened five other times in the past 100 years, all during moments of crisis like the Great Depression, Black Monday, and 2008’s Great Recession
On April 10, the Dow Jones Industrial Average popped 7.9%, its biggest single-day gain since March 2020. The S&P 500 surged 9.5%, its biggest single-day gain since 2008. And the Nasdaq soared 12.2%, notching its second-best day ever.
A post-winning-streak slump to begin the first-quarter earnings season, with all three major indices closing in the red.
And most recently, the market soared in one of the most impressive upward thrusts in history. After closing higher for the fourth straight day, the Nasdaq was up 6.7%, the S&P popped 4.6%, and the Dow rose 2.5%, triggering some ultra-rare and ultra-bullish technical buy signals…
In fact, while the market recovered over the past few trading days, just last week, it was tracking for its third-worst year on record after dropping more than 12% in the first 74 trading days.
The only years that had worse starts? 1932 and ‘39 – when the U.S. was crawling through the Great Depression.
Things got that bad this year.
And if you’re wondering what caused this mess in the first place, well, you probably already know the answer…
“Liberation Day.”
How ‘Liberation Day’ Unleashed Stock Market Mayhem
It may have a positive implication, but “Liberation Day” offered no reason to celebrate.
That was the day that U.S. President Trump detonated an economic bomb of sorts, igniting one of the most aggressive, sweeping trade wars in our history.
He enforced tariffs on nearly every U.S. trading partner that were so big, many thought they would completely freeze global trade.
Consumer confidence cratered. Treasury yields surged. Widespread panic ran rampant on Wall Street.
Since then, chaos has been the norm:
China fired back, imposing tariffs on 128 products it imports from America, including a 25% tariff to aluminum, airplanes, cars, pork, and soybeans, as well as a 15% tariff to fruit, nuts, and steel piping
Trump responded by hiking tariffs on China even more to 125%
Then the White House paused tariffs levied against our trading partners – excluding China – while still hiking Chinese tariffs even more
The U.S. then exempted electronics from those ultra-high China tariffs, with talk of possible auto part exemptions as well
All the while, the White House claims that the U.S. is having great talks with other trading partners but without any tangible trade deals to show for it
And while trade tensions do seem to be simmering down, the White House is apparently opening probes to potentially launch a new set of tariffs on semiconductors and pharmaceuticals
It feels more like we’re watching a political soap opera instead of a functioning market.
Everyone – from billion-dollar hedge fund managers to Main Street investors – is flying blind.
But here’s the thing…
As painful as it’s been… and as confusing and volatile as it still is…
Protect Your Portfolio from the Coming Stock Market Shock
Today, roughly $7 trillion is parked in money‑market funds, earning about 4.5% while investors wait for better opportunities to pop up.
In other words, we’re all waiting for a catalyst that could be the pin that pops the “cash bubble,” unleashing a violent rotation back into stocks – what we’re calling The 2025 Summer Panic.
In fact, I’m so confident that this big event scheduled to take place very soon – May 7 to be exact – is virtually guaranteed to trigger huge moves in the market.
It has been almost 30 yearssince investors last saw the same one‑two punch of this bullish signal and a breakthrough technology platform. Back then it was the internet. Right now it is artificial intelligence.
When that cash stampede begins, history suggests it will not dribble in slowly. In 1997, the same signal we’re seeing today sent money‑market balances down 8% in a single quarter and ignited a two‑year melt‑up that minted millionaires.
I believe the setup is even stronger now. And on May 7, the $7 trillion sitting in cash could rush toward the very companies building America’s AI‑powered future.
That’s why, just last night, I hosted a special market briefing to reveal exactly what’s coming, why it could hit in just a few days, and how you can protect yourself… and even profit.
Because in every moment of panic, there is opportunity – ifyou know where to look.
Don’t wait until after the headlines hit. Get ahead of the incoming chaos, and position yourself before everyone else does.
Amazon shares wavered between losses and gains Friday after the e-commerce and cloud computing giant issued a cautious outlook amid uncertainty about the economy
Since bottoming out last month, Amazon shares have consolidated within a rising wedge. More recently, the price has rallied toward the wedge’s top trendline and 50-day moving average, a move that has coincided with the relative strength index crossing back into bullish territory.
Investors should monitor key support levels on Amazon’s chart around $170 and $152, while also watching important resistance levels near $199 and $216.
Amazon (AMZN) wavered between gains and losses Friday after the e-commerce and cloud computing giant issued a cautious outlook amid uncertainty about the economy, offsetting strong quarterly results.
During the company’s earnings call, CEO Andy Jassy told analysts the company hasn’t seen any significant impact from tariffs denting consumer demand or sellers setting product pricing, but cautioned that may change. He also said that Amazon has remained proactive to keep prices low.
Amazon shares had lost 13% since the start of the year through Thursday’s close and dropped 22% from their record high established in early February, weighed down by concerns that the company could get caught in the crosshairs of a protracted U.S.- China trade war. The stock was up about 1% at $192 in early-afternoon trading Friday, recovering from losses earlier in the session.
Below, we break down the technicals on Amazon’s chart and point out key post-earnings price levels worth monitoring.
Rising Wedge in Focus
Since bottoming out last month, Amazon shares have consolidated within a rising wedge. More recently, the price has rallied toward the wedge’s top trendline and 50-day moving average (MA), a move that has coincided with the relative strength index (RSI) crossing back into bullish territory.
Let’s identify several key support and resistance levels on Amazon’s chart that will likely gain investors’ attention.
Key Support Levels to Monitor
A decisive breakdown below the rising wedge pattern’s lower trendline could see the shares drop to around $170. This area on the chart would likely provide support near the late-April low and the trough of a minor pullback to the 200-day MA last August.
Selling below this level brings lower support at $152 into play. Bargain hunters could seek buying opportunities at a location near last year’s early August sell-off low. This region also roughly aligns with a projected bars pattern downside target that extracts the trend lower that preceded the rising wedge and repositions it from the pattern’s top trendline, speculating where the shares may be headed if a continuation move lower plays out.
Important Resistance Levels to Watch
A breakout above the rising wedge pattern’s top trendline would likely see the stock test overhead resistance near $199. The shares may run into selling pressure in this area near a horizontal line that connects a range of corresponding trading activity on the chart extending back to early July last year.
Finally, a more bullish move higher in Amazon shares could propel a move up to $216. Investors who bought at lower levels may see this as high probability area to place sell orders near the stock’s November peak and January trough.
The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.
As of the date this article was written, the author does not own any of the above securities.
Airbnb reported softer U.S. demand, which it blamed on economic uncertainties.
The travel rental site sees current-quarter average daily rate to be flat, and adjusted EBITDA margin to be flat or down slightly.
First-quarter profit and sales were above estimates.
Airbnb (ABNB) shares pulled back slightly Friday, a day after the vacation rental site warned that economic conditions were leading consumers to pull back on travel spending.
In a letter to shareholders along with its first-quarter results, the company said, “In the U.S., we’ve seen relatively softer results, which we believe has been largely driven by broader economic uncertainties.” Airbnb explained it now expects its second-quarter average daily rate (ADR) to be “approximately flat year-over-year,” and adjusted EBITDA margin “to be flat to down slightly.”
In the first quarter, the company reported earnings per share of $0.24, with revenue up 6% to $2.27 billion. Both were slightly above Visible Alpha forecasts.
Airbnb noted that the rise in revenue was primarily because of “solid growth in nights stayed.” Nights and experiences booked gained 8% to 143.1 million.
The first 100 days of Trump 2.0 have been explosive, with unprecedented moves across financial markets. April was an historic month of U-turns and flip-flopping on policy by the Trump administration, but recently, the more subdued tone on trade wars has supported risk appetite once again.
China said it is evaluating US officials’ willingness to negotiate trade talks, giving a spark of hope for de-escalating the trade war between the world’s largest two economies.
Market volatility has eased back from multi-year high and US stocks have rebounded impressively. The S&P 500 extended its rally, posting its strongest eight-day winning streak since November 2020.
Ultimately, markets appear to be shrugging off trade war concerns for now, buoyed by optimism that negotiations may ease tensions, plus resilient corporate earnings.
In the macro sphere, data has been mixed. The US economy contracted by 0.3% in the first quarter of 2025, marking its first decline since early 2022. Consumer confidence fell to a 5-year low, but the ISM manufacturing PMI was less downbeat than expected.
Still, growing fears of tariffs triggering a global economic slowdown have led to more monetary easing being priced in by markets. No change from the Fed is expected next week, but at least three cuts are priced in by year-end.
In FX, the more positive risk environment and easing market volatility have reduced more of the risk premium from the USD. The dollar index has modestly rebounded from 3-year lows, but the structural outlooks remains bearish.
Global Macro Wave of macro data points to global slowdown
US Q1 GDP contraction. The US economy contracted by 0.3% in the first quarter of 2025, slightly more than expected, marking its first decline since early 2022. This follows the 2.4% growth recorded in the previous quarter, underscoring a sharp reversal in momentum. A key driver of the slowdown was a staggering 41.3% surge in imports, as businesses rushed to stockpile goods ahead of anticipated tariff hikes. This widened the trade gap, with net exports dragging down GDP by nearly 5 percentage points, the largest impact on record. Government spending also contributed to the downturn, subtracting 0.25% from overall growth, its first negative impact since 2022. Additionally, private expenditure saw a significant decline, as businesses and investors navigated heightened uncertainty throughout the quarter.
PCE and job market. Fed’s preferred measure of inflation for the month of march, came slightly higher than expected, but cooled off. PCE prices in the US increased 2.3% year-on-year in March 2025, the lowest in five months but above market expectations of 2.2%. In February, PCE prices was revised upwardly to 2.7%. On the other hand, weekly jobless claims climbed to their highest level since Feb 2025. Both data points could be read as bad news for the Fed, as stagflation worries mount.
China PMI slows. Manufacturing activity saw a sharper-than-expected drop in April, entering contraction territory, with services growth also falling short. Concerns over the economic fallout from trade tensions persist, as it’s unclear if Beijing and Washington are actively negotiating. For now, Chinese authorities are taking a cautious approach, opting for measured responses rather than aggressive stimulus.
Focus shift. With the US administration reversing course on tariffs last week, markets have refocused on trade impacts on global growth. The sharp decline in commodity prices underscores widespread expectations of an economic slowdown, though the extent and duration remain uncertain. Macro sentiment has weighed more on global debt and commodities than equities. While volatility has eased, uncertainty continues to linger.
Week ahead Central Bank decisions and PMIs in focus
Central bank decisions take center stage. The week features two major central bank meetings, with the Federal Reserve’s FOMC decision on Wednesday and the Bank of England’s policy announcement on Thursday. The Fed is widely expected to maintain its target range at 4.25%-4.5%, while markets anticipate a potential 25bps cut from the Bank of England to 4.25% from the current 4.5%. These decisions will be crucial for currency markets, as investors gauge the diverging monetary policy paths of major economies.
Global PMI readings dominate the calendar. The week begins with final April PMI figures across major economies, offering insights into business activity trends. Monday features US services and composite PMI final readings, followed by China’s Caixin services PMI on Tuesday. European PMIs will be released throughout Tuesday, including final figures from France, Germany, and the broader Eurozone, alongside the UK’s services PMI. Japan’s PMI data follows on Wednesday, with the UK construction PMI completing the global PMI picture.
Industrial production data to gauge manufacturing health. Several key economies report manufacturing output figures, starting with France on Tuesday (consensus +0.3% MoM). Germany follows with factory orders on Wednesday (expected +2.1% MoM) and industrial production on Thursday (forecast +1.0% MoM). The UK rounds out the week with manufacturing and industrial production readings on Friday, providing a comprehensive view of global manufacturing conditions amid ongoing economic uncertainties.
Labor market and trade data provide growth insights. The US trade deficit is expected to narrow slightly to $119.5 billion (from $122.7 billion) when reported Tuesday. Canada’s employment figures cap the week on Friday, with forecasts showing a 25,000 job gain following the previous month’s 32,600 decline. The unemployment rate is anticipated to hold steady at 6.7%. These reports will offer valuable context on North American economic resilience as central banks weigh policy adjustments.
FX Views Risk appetite offers dollar reprieve
USD Risk premium reduced for now. The US dollar index posted its worst monthly performance since late 2022 and has dropped over 9% from its 2025 peak in January. But the mood music on trade has improved slightly of late, which has allowed the US dollar to claw back (albeit modestly) some of its recent losses. Despite US GDP contracting in Q1, and consumer confidence dropping to a 5-year low, the ISM manufacturing report wasn’t as bad as expected. Meanwhile, the slightly more positive risk environment and easing market volatility have reduced more of the risk premium from the dollar’s price. That said, the underlying issue has not gone away. The dollar’s challenges stem less from losing its “exorbitant privilege” and safe-haven status, and more from the looming threat of a sharp US economic slowdown tied to trade disruptions and uncertainty. Dollar price action remains poor for now and a further downturn in core US data could lead to an acceleration of the de-dollarization trend. Then there’s the Fed’s meeting next week, which will reveal whether market expectations for swift rate cuts are justified.
EUR Losing shine, but positive structural shifts. Last month proved to be the best ever April for EUR/USD since the inception of the euro back in 1999, but a new bullish trigger for the euro is needed. The rebound in risk appetite, retreating volatility, month-end flows and hopes that the peak of trade war uncertainty is behind us have weighed on the euro for the week or so. This is despite evidence of contrasting economic signals from the US and Europe. Still, the pair remains circa 9% higher year-to-date, well above long-term moving averages, supported by a more-promising euro-area fiscal and structural domestic outlook as well as the structurally weaker dollar case. The deflationary impact of tariffs on the Eurozone opens the door to more ECB rate cuts, which could limit EUR upside, but what appears to be a more favourable cyclical channel might prove more important for the common currency over the long-term. Indeed, as markets adjust to structural shifts, expectations for EUR/USD reaching $1.20 this year are gaining traction.
GBP Mixed fortunes. GBP/USD scored its biggest monthly gain since November 2023, but GBP/EUR suffered its biggest monthly decline since December 2022 amidst the rapid rotation of flows from the dollar into the euro following Trump’s tariff announcements. This week has been a mixed one for the pound, up most against EUR, NZD and JPY, the latter more than 1% after that dovish Bank of Japan meeting. But GBP/USD is largely unchanged at around $1.33, whilst versus the NOK and AUD, sterling is down on the week. Global risk sentiment continues to dictate sterling’s price action, but the dovish repricing of Bank of England easing bets is limiting its gains. Traders are now pricing in four more quarter-point interest rate cuts from BoE this year ahead of next week’s meeting where a rate cut is fully priced in. GBP/USD could fall slightly below $1.32 and still be above its 21-day moving average in a sign that the uptrend remains intact and with the 14-day relative strength index approaching neutral levels, this type of consolidation/retracement is healthy before attempting another leg higher.
CHF All eyes on SNB’s response. Despite the rebound in global risk appetite this week, the Swiss franc has snapped a 2-week losing streak versus the EUR and USD and posted its best monthly performance versus the buck (+6.6%) since 2015. Without a broader improvement in global risk sentiment, the Swiss franc’s safe-haven status continues to challenge the Swiss National Bank. The sharp rise in the franc is being monitored closely by the SNB as it risks pushing inflation into negative territory. With Swiss inflation already at just 0.3%, tightening financial conditions could amplify deflation risks, presenting a challenging policy dilemma. Two-year yields have dipped back into negative territory, and swaps markets are now fully pricing in a quarter-point rate cut for June. For now, FX intervention seems unlikely to avoid rekindling tensions with the US administration, which previously labeled Switzerland a currency manipulator during Trump’s first term.
CADBreakout below 1.38 fails. The Canadian dollar has found solid support from broader dollar weakness throughout April, gaining around 4% against the greenback, its strongest monthly gain against the US dollar since April 2015. This week, USD/CAD tested a key support level at 1.377, the lowest since October 2024, following optimistic comments from President Trump on renewed trade talks with newly elected Prime Minister Mark Carney. However, CAD struggled to hold below 1.38 as weaker-than-expected macro data weighed on sentiment, reinforcing a bleak outlook for the remainder of the year. The PMI manufacturing index fell to 45.3 in February, marking its third consecutive decline and the weakest reading since May 2020, signaling ongoing stress in factory activity.
The weekly chart shows firm support at the 90-week SMA at 1.379. Over the past two weeks, CAD has fluctuated between a high of 1.3905 and a six-month low of 1.377, establishing key resistance and support zones to monitor in the days ahead. A ‘death cross’ has emerged on daily candles, with the 20-day SMA crossing below the 200-day SMA, indicating a bearish trend. However, price action is expected to remain range-bound, gravitating toward the 1.393 level, especially if dollar weakness fades and renewed demand for the greenback picks up in the coming days.
AUD Inflation surprise fails to derail RBA cut expectations. Australia’s Q1 headline CPI came in at 2.4% year-over-year, slightly above the 2.3% consensus, while the critical trimmed mean measure (which RBA closely monitors) reached 2.9%, exceeding expectations of 2.8%. Despite these upside surprises, markets remain convinced the RBA will proceed with a 25bps rate cut in May, with 26bps of easing already priced in. Technically, AUD/USD continues testing the critical 200-day EMA resistance at 0.6408, a level that has historically capped advances. The next key support for the pair rests at 21-day EMA of 0.6351. Watch for upcoming Judo Bank services PMI and building approvals data, which could influence near-term price action. A solid services print might temporarily delay RBA easing expectations, potentially providing additional short-term support for the currency.
CNYManufacturing weakness emerges as Yuan stabilizes. China’s economy is showing initial impacts from tariff concerns, with April’s official manufacturing PMI disappointing at 49.0, significantly below the 49.7 forecast and previous 50.5 reading. The non-manufacturing PMI also underwhelmed at 50.4, missing expectations of 50.6. Particularly concerning was the manufacturing export orders component, which plummeted from 49.0 to 44.7, highlighting growing external pressures. USD/CNH has corrected over 2% from its daily April 8 peak of 7.4290. The pair now approaches key technical support at the 200-day EMA (7.2537), potentially offering an attractive entry point for USD buyers anticipating the longer-term uptrend to resume. Market focus will shift to upcoming Caixin Services PMI, trade balance, and new loans data. The trade figures will be particularly scrutinized for evidence of export resilience amid growing global protectionist measures and signs of manufacturing weakness already evident in the PMI data.
JPY BoJ caution triggers sharp Yen selloff. Markets interpreted the BoJ’s latest communication as surprisingly dovish, triggering an outsized reaction despite Governor Ueda’s moderately hawkish press conference tone. This disconnect highlights the uncertainty phase markets are navigating, particularly with ongoing US-Japan trade negotiations creating additional complexity. USDJPY’s sharp move higher complicates the picture, as the US administration generally prefers yen strength. This tension might reinvigorate speculation for an earlier rate hike, especially considering Japan’s deeply negative real rates amid the BoJ’s still highly accommodative stance. Technically, USDJPY has broken through the important 144.00 resistance level that capped gains throughout late April, clearing out accumulated JPY long positions. The pair now targets 147.00, with immediate support established at 143.50. This technical breakout appears driven by the BoJ’s downward revisions to growth and inflation forecasts rather than a fundamental shift in policy trajectory. Key upcoming data includes the BoJ monetary policy meeting minutes, au Jibun Bank services PMI, household spending, and foreign reserves reports.
MXNPeso trades at 5-year average. The Mexican Peso has held steady, trading near 19.5, its five-year average, and staying below 20 despite mixed local and US macroeconomic data. While first-quarter growth has been sluggish, agricultural activity has helped the Peso avoid slipping into a technical recession.
Challenges remain, like weaker commodity prices, a slowing outlook from its key trading partner to the north, and expectations of further Banxico rate cuts that could reduce carry appeal. Still, the short-term outlook looks brighter as President Sheinbaum’s trade successes with the US and her calm approach to tariff tensions have helped shift sentiment. This week, Mexico and the US reached two key agreements: one to deliver more water from the Rio Grande basin to Texas farmers, addressing concerns over a decades-old water-sharing pact, and another to tackle the New World screwworm pest, avoiding restrictions on US livestock imports.
The Peso’s recent gains could ease inflation worries, while slower growth may help keep broader price pressures in check. Trump’s softened stance on key policies has also boosted sentiment, with the Peso trading stronger in the near term. President Sheinbaum enjoys high approval ratings, with 67% of Mexicans viewing her leadership positively—outpacing her predecessor. Despite hurdles like tariffs and recession risks, optimism persists, with over half of Mexicans expecting economic improvement in the next six months and confidence high in Sheinbaum’s ability to negotiate better trade deals.
*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
Passing down real estate to loved ones gets more complex when the property lies across international borders. Unlike domestic transfers, international real estate transfers involve navigating different legal systems, tax obligations, and reporting requirements.
Luckily, there are legal structures and tax strategies that can minimize the complications and ensure that your property passes smoothly to your heirs.
Key Takeaways
Transferring real estate across borders requires navigating different legal systems, tax laws, and reporting obligations.
Tax implications can vary depending on the location of the property and the residency or nationality of both the owner and the beneficiaries.
Some jurisdictions have tax treaties to prevent the same property from being taxed twice.
You may be able to reduce your tax obligations by transferring assets to a business or trust.
Understanding International Estate Planning
Estate planning becomes more complex when foreign real estate is involved, as multiple legal systems and tax rules come into play. Each country may have its own inheritance laws, estate laws, and reporting requirements, which can create confusion and financial strain for heirs.
International planning helps coordinate cross-border issues to ensure your wishes are respected while minimizing legal and tax burdens for your loved ones. With a well-structured plan, you can streamline the transfer process and protect global assets for future generations.
Key Tax Considerations in Cross-Border Real Estate Transfers
Before transferring real estate internationally, it’s important to consider several key tax implications, which can vary depending on the location of the property as well as the residency and nationality of both the owner and the beneficiaries.
“The most common tax challenges people face when transferring real estate across international borders is making sure they do not trigger a taxable event or miss reporting obligations with significant IRS penalties,” said Jasmine DiLucci, tax lawyer, CPA, and founder of DiLucci CPA Firm.
If the deceased was a U.S. citizen or resident, their worldwide assets, including foreign real estate, are subject to U.S. estate taxes if the estate exceeds the exemption amount of $13.99 million in 2025. Whether the property is used for rental income also impacts tax and reporting obligations.
“If the real estate is a personal home with no rental income or bank accounts, then the tax and reporting implications are not significant. But if the real estate is a rental property, then there will be tax and reporting consequences,” DiLucci added.
Additionally, if the real estate is transferred during the person’s lifetime, gift taxes may apply. The person gifting the real estate is generally responsible for paying any applicable gift tax. But in some cases, the recipient may agree to pay it through a special arrangement.
“US real estate owned by a non-resident or foreign national transferred through inheritance or gift usually creates a taxable event for real estate since foreign nationals do not have the same estate tax exemption afforded to U.S. residents,” DiLucci noted.
However, certain gifts are exempt from taxation.
For example, in 2025, the annual exclusion for gifts is $19,000 per recipient. This means that donors can give away gifts worth up to $19,000 without paying the gift tax.
$13.99 Million
The estate tax exemption, as of 2025. If you give more than this amount over your lifetime, the excess will be subject to the estate tax. However, spouses can combine their exclusions.
Legal Systems and Their Impact on Estate Planning
The legal system in a given country plays an important role in how estates are planned and executed. Broadly, legal systems fall into two categories: common law and civil law.
Common law systems, such as those in the U.S., U.K., and Canada, typically allow more freedom in determining how assets are distributed, often relying heavily on wills and trusts.
Civil law systems, such as those in France, Greece, and Spain, may impose forced heirship rules, where certain portions of an estate go to specific heirs, regardless of the decedent’s wishes.
Understanding which legal framework applies is necessary to crafting an estate plan that aligns with the local laws while still reflecting the individual’s intentions.
Role of Tax Treaties in Mitigating Double Taxation
Tax treaties between the U.S. and other countries help prevent your heirs from being taxed twice when they inherit foreign real estate. These agreements usually give the country where the property is located the sole right to tax it, but they may also allow a credit so you’re not taxed again in the U.S. on the same property.
“Utilizing the taxes paid in the other country to offset any potential US tax liability is the key driver to reduce double taxation,” DiLucci said.
Imagine a U.S. citizen inherits a house in France from a parent who lived there. France imposes an inheritance tax on the property, which the heir must pay before taking ownership. Normally, the U.S. would also include the value of that house in the deceased’s estate for U.S. tax purposes. However, because the U.S. and France have a tax treaty, the heir can apply a credit for the French inheritance tax paid, reducing or potentially eliminating the U.S. estate tax on the same property.
Strategies for Minimizing Tax Implications
Several strategies can be leveraged to reduce the tax implications of international real estate transfers, including:
Gifting: Transferring ownership to heirs while living can potentially reduce tax liabilities.
Business Ownership Holding property through a business structure, such as a corporation, can simplify the transfer process, as well as offer tax benefits and protect the asset.
Joint Ownership: Adding an individual as co-owner of the property can help avoid probate and estate taxes.
“When transferring real estate internationally, available tax strategies will be based on factors such as income level, asset value, country where the property is located, and whether the person is a US citizen or resident. The location of the real estate is significant since a tax treaty may relieve certain tax implications when transferring by inheritance or gift,” said DiLucci.
Important
Placing assets in a trust can simplify real estate planning but create additional reporting requirements.
Utilizing Trusts for Cross-Border Real Estate Transfers
Trusts are one of the most effective tools for managing international real estate planning. A trust allows an individual, the grantor, to place assets under the control of a trustee for the benefit of the beneficiaries. In cross-border scenarios, trust can help:
Avoid probate in multiple jurisdictions
Reduce exposure to estate and inheritance taxes
Maintain control over how and when assets are distributed
“While trusts can provide benefits, they usually create additional reporting obligations and, in many instances, do not provide a respective tax benefit if not planned correctly,” said DiLucci.
The Bottom Line
Cross-border real estate transfers aren’t as simple as when you’re dealing with non-U.S. properties. Whether you’re planning to pass down a vacation home abroad or your primary residence, it’s important to know the laws and requirements for reporting and taxes. This allows for proper international estate planning, which allows families to preserve wealth, honor their legacy, and ensure that their loved ones are protected across borders.
The Canadian dollar has found solid support from broader dollar weakness throughout April, surging around 4% against the greenback, its strongest monthly gain against the U.S. dollar since April 2015.
This week, USD/CAD tested a key support level at 1.377, the lowest since October 2024, following optimistic comments from President Trump on renewed trade talks with newly elected Prime Minister Mark Carney.
The weekly chart shows firm support at the 90-week SMA at 1.379. Over the past two weeks, CAD has fluctuated between a high of 1.3905 and a six-month low of 1.377, establishing key resistance and support zones to monitor in the days ahead. A ‘death cross’ has emerged on daily candles, with the 20-day SMA crossing below the 200-day SMA. However, price action is expected to remain range-bound, gravitating toward the 1.39 level, especially if dollar weakness fades and renewed demand for the greenback picks up in the coming days.
The CAD struggled to hold below 1.38 as weaker-than-expected macro data weighed on sentiment, reinforcing a bleak outlook for the remainder of the year. The PMI Manufacturing Index fell to 45.3 in February, marking its third consecutive decline and the weakest reading since May 2020, signaling ongoing stress in factory activity.
This comes on the heels of a report recently released by the Financial Accountability Office of Ontario (FAO), detailing the economic effects of U.S. tariffs on steel, aluminum, automobiles, and auto parts, along with Canada’s retaliatory measures. While centered on the province of Ontario, the analysis echoes findings from the Canadian Chamber of Commerce and the Bank of Canada, reinforcing concerns that these tariffs will dampen economic growth, reduce employment, and drive-up consumer prices. FAO projects a modest recession in the province, with the manufacturing sector’s supply chain industries facing the most significant strain. The hardest-hit areas are expected to be labor-intensive services, including trade, transport, and professional services. Windsor and other cities in southern Ontario are likely to bear the brunt of the downturn.
US data downbeat but not dreadful
George Vessey – Lead FX & Macro Strategist
The US dollar and yields tracked higher yesterday following a modest ISM manufacturing data beat but still worrying signs of stagflation. Two-year Treasury yields snapped a 5-day decline, bouncing off 3.6%. The US dollar index extended towards its 21-day moving average in an attempt to break the downtrend it’s been in since early February. But its attempt has proved unsuccessful (for now) ahead of today’s key US jobs report and next week’s Federal Reserve (Fed) meeting.
April’s ISM manufacturing index fell to 48.7, a five-month low, signalling continued contraction in the sector. While the headline number wasn’t as weak as feared, subcomponents showed a mixed picture – prices were higher but less than expected, and orders/employment surprised positively, but both remained below 50, reinforcing stagflation concerns. The sector has struggled under widespread tariffs, with optimism fading since President Trump’s election as businesses face weaker sales and rising costs. The broader economy remains resilient for now, but risks loom, especially after Q1 GDP contracted for the first time in three years due to a record surge in imports tied to trade disputes.
Today, all eyes are on the US jobs report for April, which is unlikely to capture the full employment hit from Trump’s tariff announcements. The unemployment rate is expected to hold steady at 4.2%, whilst the non-farm payrolls consensus is 138k, down from 228k in March. A solid jobs report will mean there’s no urgency for the Fed to cut rates next week, or even to signal an impending move. Still, jobs are starting to be cut in the US as evidenced by the latest Challenger report which shows almost 700k jobs have been cut over the last 6 months. So looking ahead, we expect May’s jobs report to be very weak and pressure will build on the Fed to prioritize the full-employment side of its dual mandate, which could be another drag on the dollar over the coming months.
Euro flirting with key support level
George Vessey – Lead FX & Macro Strategist
The euro is heading for its second consecutive weekly decline against the US dollar, pressured by improved global risk sentiment and subdued volatility amid optimism about potential trade deals. EUR/USD has so far bounced off its 21-day moving average though, in a sign that the recent uptrend remains intact for the time being. Flash Eurozone inflation figures are in the spotlight today, with the headline figure expected to inch closer to the ECB’s 2% target.
Meanwhile, the signing of a long-anticipated mineral agreement between Ukraine and the US failed to provide support, indicating that geopolitical headwinds remain a drag on the common currency. The newly established US-Ukraine investment fund, framed by the Trump administration as both a commitment to sovereignty and a way to secure returns on military aid, hasn’t shifted market sentiment, with the euro down 0.5% – its biggest weekly drop since late March. A solid US jobs report today could drag the pair even lower, with $1.12 a potential target if the 21-day moving average is cleared decisively.
Still, EUR/USD remains circa 9% higher year-to-date, well above long-term moving averages, supported by a more-promising euro-area fiscal and structural domestic outlook as well as the structurally weaker dollar case. The deflationary impact of tariffs on the Eurozone opens the door to more ECB rate cuts, which could limit EUR upside, but what appears to be a more favourable cyclical channel might prove more important for the common currency over the long-term.
Four BoE cuts now priced in
George Vessey – Lead FX & Macro Strategist
It’s been a mixed week for the British pound, up most against EUR, NZD and JPY, the latter more than 1% after that dovish Bank of Japan meeting. But GBP/USD is largely unchanged at around $1.33, whilst versus the NOK and AUD, sterling is down on the week.
Global risk sentiment continues to dictate sterling’s price action so with equities extending their recovery to erase all of their post “ Liberation Day” losses, the pound has enjoyed a rebound against its traditional safe haven peers barring the US dollar. The latest positive news relates to China mulling trade talks with the US. Meanwhile, traders are now pricing in four more quarter-point interest rate cuts from the Bank of England (BoE) this year ahead of next week’s meeting. The expectation of policymakers speeding up the pace of interest-rate cuts comes amidst concerns that weakness in the US economy may spread globally. It’s the first time in seven months that markets imply the benchmark rate falling to 3.5%. Such dovish repricing is a negative catalyst for the pound via the yield channel.
In other news, UK politics have also been back in the spotlight this week. Nigel Farage’s Reform UK secured a narrow victory in the Runcorn and Helsby by-election, winning by just six votes after a recount. This marks a significant setback for Prime Minister Keir Starmer, as Labour had previously held the seat with a 14,696-vote majority in the 2024 general election. The result underscores growing concerns within Labour about the rise of the populist right, with Reform making gains across England.
*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quothave a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
ExxonMobil (XOM) reported better first-quarter results than analysts expected Friday, while rival Chevron (CVX) beat profit estimates but fell just short of revenue forecasts.
ExxonMobil posted earnings per share (EPS) of $1.76 on revenue that was roughly flat year-over-year at $83.13 billion. Analysts surveyed by Visible Alpha had projected $1.75 and $78.33 billion, respectively.
ExxonMobil said it produced 4.6 million barrels of oil equivalent per day (BOE/D) during the quarter, matchingthe consensus estimate of 4.6 million BOE/D. Last quarter, ExxonMobil’s mark of 4.6 million BOE/D put it at 4.3 million BOE/D for the year, its highest average production in a decade.
Rival Chevron posted adjusted EPS of $2.18, revenue of $47.61 billion, and production of 3.35 million BOE/D. Analysts had expected $2.14, $47.88 billion, and 3.3 million BOE/D, respectively.
Chevron also plans to buy back significantly less stock in the second quarter than it did in Q1 amid falling oil prices. It projects repurchases between $2.5 billion and $3 billion in the current quarter, down from $3.9 billion in the first. The company said its full-year outlook of $10 billion to $20 billion in buybacks remains intact.
ExxonMobil shares were up 1% soon after Friday’s report, while Chevron shares were fell 2%.The stocks entered the day down roughly 2% and 6%, respectively, since the start of the year.
Banks, asset managers, and corporates push crypto and digital currencies into the mainstream amid shifting financial dynamics.
The argest bank in Italy, Intesa Sanpaolo, quietly purchased $1 million worth of bitcoin in early January. The move was not publicly disclosed; it surfaced in an internal bank memo. When pressed by reporters, CEO Carlo Messina described the purchase as merely a “test,” suggesting that Intesa may eventually acquire more bitcoin on behalf of some of its wealthy clients.
It could be a harbinger of things to come.
After years of keeping their distance, movers and shakers in the traditional financial world appear ready to play ball when it comes to cryptocurrencies and stablecoins. (Stablecoins are a type of cryptocurrency designed to maintain a stable value over time; they are typically pegged 1:1 to the value of traditional currencies like the US dollar or the euro.)
“The financial services industry is on the verge of entering the crypto economy,” Fortune reported Bank of America CEO Brian Moynihan saying in February. And in March, Fidelity Investments, one of the world’s largest asset managers, was reported to be in advanced testing of its own stablecoin.
Competitive pressure and the need for a fast time to market are key drivers—fueled by rising demand from clients, including corporates, and by a shifting macroeconomic backdrop marked by Trump-era tariff threats and doubts about the global dollar system’s resilience. Together, these forces are pushing banks and asset managers to hedge geopolitical risk and tap new revenue streams through digital assets.
The Intesa purchase was made through Boerse Stuttgart Digital, which recently became Europe’s first regulated exchange for trading digital assets under the EU’s new Markets in Crypto Assets Regulation (MiCA) framework. The exchange is a unit of venerable Boerse Stuttgart Group, Europe’s sixth-largest exchange group.
“Institutional adoption of crypto assets is gaining momentum across Europe,” observes Joaquín Sastre Ibáñez, chief revenue officer at Boerse Stuttgart Digital. He expects other European banks and institutional investors to follow Intesa’s footsteps.
“In Germany, for example, we have recently partnered with DekaBank to offer crypto trading to institutional clients,” Sastre Ibáñez notes. Many financial institutions had been waiting for a clear regulatory framework before introducing crypto offerings to their customers, which MiCA now provides.
It’s not just in Europe that the crypto temperature is rising. In early March, the US established a Strategic Bitcoin Reserve, and many individual US states, most notably Texas, could soon have bitcoin reserves of their own. Pension funds, too, are “dipping their toes into buying bitcoin,” The Financial Times reported in January, including funds in the UK and Australia, “a sign that even typically staid corners of finance are finding it hard to ignore the potential outsized returns from cryptocurrencies.”
In the US, stablecoin legislation moved out of a key Senate committee with bipartisan support in mid-March and passage is soon expected. The legislation sets clear rules for stablecoin issuers, requiring full reserve backing and compliance with anti-money laundering laws to safeguard consumers and reinforce the US dollar’s global standing. Stablecoins often act as a bridge between crypto and national currencies; they share the same underlying blockchain technology as tokens like bitcoin and Ethereum.
“The US’s pro-crypto stance is reshaping the global financial landscape by integrating digital assets into the mainstream economic agenda,” says Federico Brokate, head of US Business at 21Shares, a cryptocurrency exchange-traded fund (ETF) provider based in Switzerland.
The creation of the US Strategic Bitcoin Reserve along with the US Digital Asset Stockpile, consisting of tokens other than bitcoin, marks a significant shift in institutional perception, he adds, “positioning cryptocurrencies as essential financial instruments rather than speculative assets. This move not only signals long-term confidence in digital assets but also sets a precedent for other nations.”
“Digital assets are here to stay, as convergence of traditional and digital finance advances.”
Joaquin Sastre Ibanez, Boerse Stuttgart Digital
Two major pension funds in the US have already made significant investments in spot bitcoin ETFs: The State of Michigan Department of the Treasury and the State of Wisconsin Investment Board. The latter has committed more than $300 million to IBIT, BlackRock’s spot bitcoin ETF.
“We expect this trend to continue among pensions as regulatory clarity continues to progress in the US,” says Brokate. Institutional interest extends to other regions as well, he adds; Abu Dhabi’s Sovereign Wealth Fund has invested more than $450 million in IBIT.
The Future Of Money
Simon McLoughlin, CEO of UPHOLD, a cryptocurrency trading platform, sees stablecoins in particular as playing a key role in transforming global finance. “Stablecoins are the future of money,” he says, “so much so, in fact, that in 10 years’ time, we won’t even refer to stablecoins. They will just be money.”
Simon McLoughlin, CEO, UPHOLD
“Stablecoin issuance has grown rapidly in recent years and become a significant part of the financial system,” S&P Global Ratings concluded in a February report. “Stablecoins could enable smoother transactions, faster settlements, and lower costs for cross-border payments—especially in areas that lack access to traditional banking infrastructure.”
Indeed, stablecoin market capitalization reached $230 billion in mid-March, up 56% from a year earlier; analysts at Bernstein predict market cap could exceed $500 billion by yearend.
Fintechs like Tether (USDT) and Circle (USDC) are pioneering the issuance of stablecoins, but other issuers may soon jump in.
“There will be stablecoins run by municipalities, businesses, and other organizations,” McLoughlin predicts. “But most importantly of all, there will be stablecoins issued directly by banks. We will have branded money.”
CFOs may have to adjust their thinking accordingly, he adds.
“CFOs need to start preparing now for a future where some of the functions of corporate treasury and international accounting are fulfilled on the blockchain,” McLoughlin said. When it comes to international payments, for instance, “if one of your rivals is using stablecoins to move money around the world and your business is not, you will be at a distinct disadvantage.”
Are Institutions Making Crypto Safer?
What about cryptocurrencies proper, like bitcoin? Unlike stablecoins, their market prices have always been volatile. But as more traditional financial firms embrace the crypto economy, those wild price gyrations may flatten out, anticipates Geoff Kendrick, global head of digital assets research at Standard Chartered.
“Institutional buyers are less likely to sell on bad days than are leveraged retail buyers,” he says.
Moreover, custody solutions from traditional financial institutions like BNY Mellon or State Street could make storing crypto easier and more secure than current offerings by crypto-focused fintechs. Regulatory clarity in places like the US, too, could lead to less volatility while helping to “remove FTX issues,” says Kendrick, referring to the market-roiling collapse of the Bahamas-based cryptocurrency exchange in November 2022.
More institutions are interested today in both selling crypto to retail clients and diversification for their own corporate treasuries, says Boerse Stuttgart Digital’s Sastre Ibáñez. His group is partnering with Germany’s DZ Bank, for instance, to offer its retail clients direct access to crypto trading and custody.
If cryptocurrencies become less volatile, more pension funds and insurance companies could dive in, too. In December, one of Australia’s largest superannuation fund providers, AMP Limited, made a A$27 million ($16.4 million) investment in bitcoin futures, which CIO Anna Shelley described in a commentary on AMP’s website as a “cautious step” into bitcoin futures for members. Bitcoin could potentially be used as an alternative store of value to gold, she wrote, on the negative side, bitcoin “offers no yield.”
Still, many of Australia’s super funds—a category that includes pension funds—“already invest in many assets that have no yield,” Shelley noted in her commentary, “such as foreign currencies, derivatives and commodities, and even some listed companies [that] make no profit and deliver no dividends.”
Blue-Sky Speculation And Counterparty Risks
Some partisans set crypto’s sights even higher; one day, they say, central banks might invest in cryptocurrencies for diversification.
“Central banks considering investing in bitcoin could be emboldened by the fact the US government is going to at least hold on to the 270,000 bitcoins it currently owns, and potentially buy more at some stage,” Kendrick wrote in a January note, as reported by The Wall Street Journal.
Elsewhere, Aleš Michl, who heads the Czech National Bank, told The Financial Times in January that he would present a plan to his board to invest in bitcoin as a way to diversify the central bank’s reserves.
This proposal drew a flutter of scornful reactions. “Michl is mixing up the role of a central banker with that of a portfolio manager,” Elias Haddad, senior market strategist at Brown Brothers Harriman, told Bloomberg.
Indeed, some of this blue-sky speculation may not be accounting for all the risks.
“Stablecoins, issued by private entities, can fail like banks, risking de-pegging,” says Hanna Halaburda, associate professor at New York University’s Stern School of Business. Then, too, stablecoins are traded on blockchain networks, “offering decentralization and programmability but facing congestion risks and high costs.”
In addition, she notes, stablecoins have limited practical use in the US and some other countries where “traditional banking services are already efficient and reliable.” The largest demand for US-denominated stablecoins is overseas, “particularly in regions with unstable currencies or costly financial infrastructure.”
In many African countries, for example, “stablecoins provide a way to hold digital dollars, preserving purchasing power in economies plagued by inflation,” Halaburda notes. “They are also widely used for cross-border transactions, offering a faster and often cheaper alternative to traditional remittance services.”
But if a US central bank digital currency (CBDC)—a digital dollar—were ever made accessible internationally, that “could potentially serve these roles even more effectively,” she adds.
CBDCs vs Stablecoins
CBDCs are not cryptocurrencies, of course, but they are digital money like stablecoins: and the two may be in competition. Facebook’s Libra stablecoin, announced back in 2019, spurred digital currency awareness among central banks. The project was later abandoned, but as of February 2025, 134 countries and currency unions, representing 98% of global GDP, were exploring a CBDC, according to the Atlantic Council’s Central Bank Digital Currency Tracker.
CBDCs remain controversial, however, particularly in Western countries, where they come freighted with privacy questions. In January, an executive order by President Trump banned research and development for a US CBDC.
Trump’s rejection of a digital dollar, and his embrace of stablecoins, appears to have spurred the EU to speed up implementation of its own CBDC project. European Central Bank President Christine Lagarde said recently that Europe needs to push fast on the digital euro.
“Accelerating its implementation suggests that [EU] policymakers see strategic value in a CBDC, particularly in a rapidly evolving global financial landscape,” says Annabelle Rau, an associate at McDermott Will & Emery in Germany. “However, its success will depend on striking the right balance between innovation, privacy, and financial stability.”
The EU has set a high standard for privacy with its General Data Protection Regulation, Rau notes. “Nonetheless, public trust will be crucial, and addressing concerns around data access, anonymity, and surveillance risks will require clear legal safeguards and transparent communication from policymakers.”
Stablecoins and CBDCs might eventually co-exist, although the importance of their role could vary from country to country, Halaburda suggests.
“China favors state-controlled rails and discourages blockchain-based finance, making the digital yuan likely to prevail,” Rau says. “The EU is regulating stablecoins under MiCA while taking a cautious approach to the digital euro, allowing both to coexist. In the US, stablecoins thrive in the absence of a CBDC, though pending regulations could either strengthen their role or constrain them in favor of a digital dollar.”
Here To Stay?
Whether it be cryptocurrencies, stablecoins, or central bank digital currencies, a consensus appears to be forming that “digital assets are here to stay, with mainstream adoption accelerating as the convergence of traditional and digital finance advances every day,” Boerse Stuttgart Digital’s Sastre Ibáñez says. If so, “corporate CFOs should be aware of the growing importance and adapt by integrating digital assets into their financial strategies while ensuring compliance with evolving regulations.”
Fundamental challenges remain, particularly in governance, risk management, and regulatory oversight. “While some convergence is taking place, particularly in areas such as digital securities and asset tokenization, it is likely that elements of both [crypto and traditional currency] systems will continue to coexist rather than fully merge in the near future,” says Rau.
McLoughlin, at UPHOLD, remains buoyant. Consider only the trillions of dollars locked up in banks today to facilitate international transactions, he argues. Indeed, $10 trillion are held in nostro/vostro accounts globally, according to a December report from Bitso Business. “Imagine,” McLoughlin suggests, “what we could do if those funds were available to power growth instead.”
