On Monday, Wall Street stock futures rose while the dollar strengthened against safe havens, fueled by positive signals in U.S.-China trade talks, heightening hopes of averting a global recession. Although specific details were scarce, both U.S. Treasury Secretary Scott Bessent and Chinese officials reported “substantial progress” and “important consensus” on trade matters, with discussions anticipated to continue through a new economic dialogue forum. A joint statement was expected later, but neither side committed to specific tariff adjustments.
Michael Brown, a senior research strategist at Pepperstone, noted that while the talks represented a positive, broad framework for further negotiations, they lacked a concrete deal to adjust tariffs. Market speculation suggested that investors are hopeful the White House might reduce the current 145% tariff on Chinese goods to at least the 60% mentioned by former President Trump. However, Trump’s inclination to maintain extensive tariffs may hinder economic growth and elevate prices, complicating the outlook.
In response to the trade developments, the S&P 500 futures climbed 1.2%, and Nasdaq futures gained 1.4%. European stocks also saw gains, with EURO STOXX 50 futures up by 0.9%, as markets in Japan and South Korea registered slight increases. In China, however, blue-chip stocks rose 0.8%, despite concerning data showing a significant drop in factory-gate prices and ongoing declines in consumer prices.
On the currency front, the dollar appreciated 0.4% against the Japanese yen, reaching 145.90, while the euro slipped 0.2% to $1.1224. The dollar index edged up 0.2% to 100.60, reflecting mixed sentiments regarding international trade and economic stability.
Note: The image is for illustrative purposes only and is not the original image associated with the presented article. Due to copyright reasons, we are unable to use the original images. However, you can still enjoy the accurate and up-to-date content and information provided.
