Hong Kong (AP) – Global markets showed mixed signals on Monday as investors anticipated the outcomes of the Trade Consultation between Washington and Beijing in London.
The futures for the S&P 500 and Dow Jones industrial averages climbed 0.1%.
Paris’ CAC 40 declined 0.1% to 7,797.64, while Germany’s DAX dropped 0.4% to 24,210.06.
Meanwhile, the UK FTSE 100 remained stable at 8,836.20.
In Asian trading, Tokyo’s Nikkei 225 increased by 0.9% to 38,088.57, despite the government reporting a contraction of 0.2% in the Japanese economy for the period between January and March.
In Korea, the Kospi index rose 1.6% to 2,855.77.
Despite reports of slowed exports, the Chinese market gained ground. Exports had surged over 8% in May and April but showed an annual increase of 4.8%. Exports to the United States plummeted by 35% in May and dropped nearly 10% year-over-year from January to May.
China also noted a deflationary trend, with consumer prices falling 0.1% in May compared to a year ago, marking the fourth consecutive month of deflation.
Hong Kong’s Hang Seng index rose 1.6% to 24,181.43, while Shanghai’s composite index increased by 0.4% to 3,399.77.
Australian markets were closed for a holiday.
On Friday, stocks surged on Wall Street following a report that exceeded expectations regarding the US job market.
Gains were widespread, with all sectors of the S&P 500 posting increases. This bolstered the benchmark index’s second consecutive week of gains, recovering sharply since emerging from recession two months ago, now approaching record highs.
The S&P 500 rose 1%, while the Dow Industrials decreased by 1%. The Nasdaq climbed by 1.2%.
Technology stocks stood out, contributing significant gains. Chipmaker Nvidia surged 1.2%, while iPhone manufacturer Apple rose 1.6%.
Tesla increased by 3.7%, recovering from substantial losses incurred on Thursday when tensions escalated on social media between Musk and card players.
Circle Internet Group, a prominent cryptocurrency issuer based in the US, saw a remarkable 29.4% rise, amassing a total profit of 168% since its debut on the New York Stock Exchange.
Despite uncertainty surrounding President Donald Trump’s trade war, US employers posted job additions last month, adding a robust 139,000 positions. This closely monitored monthly report underscores the resilience of the job market, even amidst concerns about the tariff impacts on businesses and consumers.
Trump’s customs policies are seen as a significant factor in the S&P 500’s recovery after reaching trade agreements with other nations, marking a reversal from a 20% drop in the past two months.
The economy, particularly within sectors like raw materials such as iron, is absorbing the effects of tariffs imposed on various goods from critical trading partners. Potentially heavy tariffs might intensify challenges for businesses and consumers in the upcoming months.
The US economy registered growth in the first quarter. A recent survey by the Supply Management Institute highlighted positive contract signings in both American manufacturing and service sectors last month. Furthermore, the Organization for Economic Cooperation and Development predicts a 1.6% growth for the US economy this year, a decline from the previous year’s 2.8% growth.
Uncertainties regarding tariffs and their economic ramifications place the Federal Reserve in a precarious position.
In other commodities, early Monday, US benchmark crude decreased by 21 cents per barrel to $64.37, while international benchmark Brent crude fell 23 cents to $66.24.
The US dollar moved from 144.85 yen to 144.09, while the euro rose from $1.1399 to $1.1426.
Source: apnews.com