Wall Street stock futures rose, and the dollar strengthened against safe haven currencies on Monday, driven by optimism over U.S.-China trade talks. Signs of progress emerged, although details remain vague. Geopolitical tensions appeared to ease, highlighted by a tenuous ceasefire between India and Pakistan, and Ukrainian President Volodymyr Zelenskyy expressed willingness to meet Russian President Vladimir Putin in Turkey for discussions.
In Geneva, U.S. Treasury Secretary Scott Bessent mentioned “substantial progress” in trade discussions, with Chinese officials noting a mutual “important consensus” and plans to establish a new economic dialogue. A joint statement is anticipated, though specifics on tariff rates were conspicuously absent. According to Michael Brown, a senior research strategist at Pepperstone, this could provide a foundational framework for future talks aimed at a comprehensive trade agreement.
The market remains hopeful that the White House might reduce the steep 145% tariff on Chinese goods, potentially down to the 60% initially proposed by former President Donald Trump. Despite Trump’s inclination to maintain high tariffs, any positive developments could mitigate the risk of a significant economic downturn.
Investor sentiments reflected this optimism, with S&P 500 futures climbing 1.2%, and Nasdaq futures increasing by 1.4%. European markets also saw gains; EUROSTOXX 50 futures rose 0.9%, and FTSE and DAX futures added 0.4% and 0.7%, respectively. In Asia, Japan’s Nikkei gained 0.3% and South Korea’s Kospi 0.4%. Meanwhile, Chinese blue chips increased by 0.8%, though factory-gate prices saw their steepest decline in six months.
The dollar strengthened by 0.4% against the yen to 145.90, although it remained below a recent peak. The euro dipped slightly to $1.1224, while the dollar index edged up to 100.60.
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