Asian, US Stock Futures Rise on EU Trade Deal Hope: Markets Wrap

4 minutes

(Bloomberg) — Equity-index futures for Asian and US stocks rose Tuesday after the European Union agreed to accelerate trade negotiations with the US, easing concerns about re-igniting the trade war.

Contracts for the S&P 500 and Nasdaq 100 jumped over 1% in early trade after a public holiday in the US and the UK Monday. Futures for stocks in Australia, Japan and South Korea also firmed up. Trading in cash Treasuries will resume Tuesday after the holiday. The dollar edged down in early Asian trade with a gauge of the greenback’s strength hovering near its lowest level in almost two years on weak demand for US assets.

“Any further tariff news could inject more volatility into currency markets and pull the dollar down,” Kristina Clifton, a senior economist and currency strategist at Commonwealth Bank of Australia wrote in note. “There is a risk President Donald Trump announces tariffs on pharmaceuticals this week” and the Eurozone is the largest pharma exporter to the US, she added.

The Europe Union’s agreement to fast-track trade talks signaled a more amicable approach just days after Trump criticized the bloc for taking advantage of the US. Tariff headlines are once again dominating the market and investors are closely watching how the administration is dealing in negotiations with Japan and India after talks with China earlier this month boosted optimism.

Over the weekend, Trump extended a deadline on aggressive tariffs on the EU to July 9 from June 1.

The trade tensions and weak demand for US assets are showing up in the dollar. Bloomberg’s dollar spot index was track for its lowest close since July 2023, while the greenback is at or approaching key levels against a host of currencies including the euro, British pound, yen and Swiss franc.

In Asia, China’s central bank asked its major lenders to raise the share of yuan when facilitating cross-border trade, in its latest push for the use of the currency as the world grapples with the onslaught of tariffs by the US. Trump’s plan to bring more factories back to the US has President Xi Jinping’s government also considering options to boost production of high-end technological goods.

There will be close attention on the nation’s electric vehicle sector, after BYD Co. introduced sweeping price cuts. Shares of China’s No. 1 selling car brand tumbled 8.6% in Hong Kong on Monday, sending shares of peers Li Auto Inc., Great Wall Motor Co. and Geely Automobile Holdings Ltd. also down amid investor concern about intensifying competition in the sector.

A key event this week will be Nvidia Corp.’s results on Wednesday. The chip-making giant is seen as a bellwether for so called growth stocks and the sustainability of the artificial intelligence boom. Its outlook will be crucial given macro risks and tariff uncertainty.

Investors are also gearing up for the Federal Reserve’s preferred inflation measure, the US personal consumption expenditures price index excluding food and energy, which will be released Friday. The April reading is forecast to rise 0.1% based on consensus expectations.

In commodities, oil fluctuated on Monday as the market weighed easing trade tensions against the outlook for rising OPEC+ supply. Gold slipped.

Some of the main moves in markets:

Stocks

S&P 500 futures rose 1.1% as of 8:12 a.m. Tokyo time

Hang Seng futures fell 1.5%

S&P/ASX 200 futures rose 0.2%

Currencies

The Bloomberg Dollar Spot Index was little changed

The euro was little changed at $1.1390

The Japanese yen rose 0.1% to 142.70 per dollar

The offshore yuan was little changed at 7.1777 per dollar

The Australian dollar was little changed at $0.6484

Cryptocurrencies

Bitcoin fell 0.2% to $109,353.59

Ether fell 0.3% to $2,558.73

Bonds

Australia’s 10-year yield declined four basis points to 4.34%

Commodities

West Texas Intermediate crude fell 0.2% to $61.43 a barrel

Spot gold was little changed

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Matthew Burgess.

©2025 Bloomberg L.P.

“There’s a lot of optimism that has been discounted in markets and it seems that many investors believe that the trade war is over,” said Frederique Carrier, head of investment strategy for RBC Wealth Management in the British Isles and Asia. “However, the underlying issues which have been at the root of tensions for decades have not been tackled.”

Equity trading volumes were light across the board. The UK and European Union extended the bidding window for debt auctions on Wednesday in response to Bloomberg LP technical issues.

Globally, the yield-curve for government debt steepened across most markets as worries mount around swelling debt and deficits. The rate for 10-year US Treasuries advanced four basis points to 4.53%, while the yield for gilts with a similar tenure rose six basis points to 4.76%.

“The direction of travel is obviously higher,” Lindsay Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management, told Bloomberg TV. “At the core of it, fiscal is in question, and it’s not just a US problem, it’s a global problem.”

In oil markets, traders were responding to a report by CNN that said it wasn’t clear that Israeli leaders have made a final decision on whether to carry out the strikes on Iran. Crude prices have been volatile since last week on mixed headlines about the fate of Iran-US nuclear talks, which could pave the way for more barrels to return to a market.

US Stock Market Highlights: Dow drops more than 100 points Friday as investors await US-China trade talks

By CNBCTV18.COM May 10, 2025 1:57 AM IST (Updated)

US Stock Market Highlights: The Dow Jones Industrial Average slipped on Friday (May 9) as investors looked ahead to key trade talks between U.S. and Chinese officials scheduled for the weekend. The Dow shed 119.07 points, or 0.29%, to close at 41,249.38. The S&P 500 edged down 0.07% to end at 5,659.91, while the Nasdaq Composite was nearly flat, finishing at 17,928.92.

US Stock Market Highlights: The Dow Jones Industrial Average slipped on Friday (May 9) as investors looked ahead to key trade talks between U.S. and Chinese officials scheduled for the weekend. The Dow shed 119.07 points, or 0.29%, to close at 41,249.38. The S&P 500 edged down 0.07% to end at 5,659.91, while the Nasdaq Composite was nearly flat, finishing at 17,928.92. For the week, the S&P 500 declined about 0.5%, the Nasdaq dropped 0.3%, and the Dow slipped 0.2%. The talks with Chinese officials follow the US and the United Kingdom reaching a preliminary trade deal. Investors hope this will lead to more agreements being reached quickly. That said, a 10% tariff rate on the UK appears to be the baseline for the globe.

US Stock Market Highlights: Dow slides nearly 400 points, S&P 500 books back-to-back losses as path on trade deals remains unclear

By CNBCTV18.COM May 7, 2025 1:44 AM IST (Updated)

US Stock Market Highlights: US stocks declined on Tuesday (May 6) as investor sentiment took a hit following former President Donald Trump’s uncertain remarks on global trade agreements, dampening hopes for progress on tariff resolutions. Markets also remained cautious ahead of the Federal Reserve’s upcoming policy decision. The Dow Jones Industrial Average dropped 389.83 points, or 0.95%, while the S&P 500 slipped 0.77% and the Nasdaq Composite fell 0.87%.

US Stock Market Highlights: US stocks declined on Tuesday (May 6) as investor sentiment took a hit following former President Donald Trump’s uncertain remarks on global trade agreements, dampening hopes for progress on tariff resolutions. Markets also remained cautious ahead of the Federal Reserve’s upcoming policy decision. The Dow Jones Industrial Average dropped 389.83 points, or 0.95%, while the S&P 500 slipped 0.77% and the Nasdaq Composite fell 0.87%. Tesla shares lost 1.8% after April sales in the UK and Germany hit a two-year low despite overall EV demand rising. Goldman Sachs also slid 1.8%, contributing to the Dow’s decline. Tech majors Nvidia and Meta Platforms ended the session in the red as well.