Global Markets:
- Asian Stock Markets : Nikkei down 0.61%, Shanghai Composite up 0.07%, Hang Seng down 0.46% ASX down 0.08%
- Commodities : Gold at $3391.35 (1.49%), Silver at $36.68 (0.69%), Brent Oil at $69.8 (-0.39%), WTI Oil at $67.8 (-0.3%)
- Rates : US 10-year yield at 4.405, UK 10-year yield at 4.5490, Germany 10-year yield at 2.5385
News & Data:
- (USD) Core CPI m/m 0.1 to 0.3 expected
- (USD) CPI m/m 0.1 to 0.2 expected
- (USD) CPI y/y 2.4 to 2.5 expected
Markets Update:
Asia-Pacific markets were mixed as investors reacted to U.S. President Donald Trump’s claim that a trade deal with China was “done.” Trump proposed maintaining a 55% tariff on Chinese imports, a stance confirmed by Commerce Secretary Howard Lutnick.
Japan’s Nikkei 225 dropped 0.58%, and the Topix lost 0.24%. In contrast, South Korea’s Kospi rose 0.83%, and the Kosdaq gained 0.79%. Australia’s S&P/ASX 200 remained flat, as did mainland China’s CSI 300. Hong Kong’s Hang Seng declined 0.51%, while India’s Nifty 50 edged up 0.11% at the open.
In the U.S., stock futures dipped as markets digested early details of the U.S.-China agreement alongside fresh inflation data. Futures for the S&P 500 and Nasdaq 100 each slipped 0.2%, and Dow Jones futures fell by 72 points. The pullback followed a lighter-than-expected increase in consumer prices for May—CPI rose just 0.1%, with core CPI also coming in below forecasts.
On social media, Trump claimed that the deal was finalized pending final approval by him and Chinese President Xi. As part of the agreement, China would provide magnets and key rare earths, while the U.S. would continue to welcome Chinese students. Trump emphasized, “WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%.”
However, this announcement failed to boost investor confidence. Ed Yardeni of Yardeni Research noted that markets may have been unsettled by Trump’s additional comments casting doubt on a nuclear agreement with Iran. According to ANZ economists, equities declined amid fears that elevated tariffs may become permanent.
Upcoming Events:
- 12:30 AM GMT – USD Core PPI m/m
- 12:30 AM GMT – USD PPI m/m
- 12:30 AM GMT – USD Unemployment Claims
