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The US stocks rose on Monday, starting June with growth, despite heightened tensions in global trade. At the end of Monday, the Dow Jones Index (US30) rose by 0.08%. The S&P 500 Index (US500) added 0.41%. The Nasdaq Technology Index (US100) closed higher at 0.67%. Tensions between the US and China have risen again after Beijing responded to US accusations of violating the tariff truce by accusing Washington of doing so. Markets are watching for a possible conversation this week between President Trump and Chinese President Xi, which could be decisive in clarifying the trade situation.

The Mexican peso strengthened to 19.2 per US dollar, its highest level in eight months, largely reflecting the weakening of the US dollar amid renewed trade restrictions and dovish shifts in US monetary expectations. Domestically, moderate growth in unemployment to 2.5% in April and stable core inflation support the Bank of Mexico’s decision to keep rates unchanged, underscoring the peso’s resilience amid global headwinds.

The Canadian dollar strengthened above the 1.37 threshold against the US dollar, reaching its highest level in almost eight months, supported by strong domestic economic indicators and rising commodity prices. In the first quarter, Canada’s economy grew by 2.2% year-on-year, exceeding the consensus expectations of 1.7%, thanks to significant growth in exports and accumulation of inventories, as companies began active deliveries ahead of expected steel tariffs in the US, while retail sales also showed notable growth in the second month, indicating broad demand.

European stock markets traded without a single trend yesterday. The German DAX (DE40) fell by 0.28%, the French CAC 40 (FR 40) closed down 0.19%, and the Spanish IBEX35 (ES35) rose by 0.36%, and the British FTSE 100 (UK100) closed up 0.02%. Negotiations between Kyiv and Moscow ended without a ceasefire, with only an agreement on the exchange of prisoners. Investors have now shifted their attention to the upcoming ECB meeting, where another rate cut is expected.

WTI oil prices rose to around $62.9 per barrel on Tuesday, continuing their rise for the second session in a row, as ongoing geopolitical tensions heighten concerns about a reduction in global supply. On Monday, Russia and Ukraine held a second round of direct peace talks after a sharp escalation of hostilities the day before, but the discussions did not yield significant progress in resolving the conflict. Iran is ready to reject the US proposal to end the decades-long nuclear dispute, arguing that it does not serve Tehran’s interests and does not soften Washington’s position on uranium enrichment.

On Monday, silver prices rose more than 5% to $34.60 per ounce, reaching two-month highs, as escalating tensions in global trade increased demand for safe assets. Amid growing uncertainty surrounding global trade policy and its potential economic implications, investors have turned to precious metals as a hedge, causing silver prices to rise alongside gold prices.

Asian markets mostly fell yesterday. Japan’s Nikkei 225 (JP225) fell by 1. 30%, China’s FTSE China A50 (CHA50) lost 0.44%, Hong Kong’s Hang Seng (HK50) decreased by 0.57%, and Australia’s ASX 200 (AU200) posted a negative result of 0.24%.

The Australian dollar weakened to 0.647 US dollars on Tuesday, reversing the sharp rise of the previous session, after the Australian Central Bank said it had considered an excessive rate cut last month. During its May meeting, the Central Bank said that policymakers had considered a bold 50 basis point rate cut as “insurance” against growing global trade risks, but ultimately opted for a more cautious 25 basis point cut. Nevertheless, markets now estimate the probability of another rate cut at the next RBA meeting at around 70%, although many analysts expect the Central Bank to wait for second-quarter inflation data before taking further action.

On Tuesday, the New Zealand dollar fell to around US$0.60, cutting its gains by 1% from the previous session and retreating from its highest level since November last year, as the US dollar regained strength. Investors continued to weigh the risks associated with ongoing global trade tensions, with friction between China and the US intensifying after Beijing rejected Trump’s claim of trade rule violations and vowed to retaliate. Additional pressure on bears came from private data from China showing a sharp decline in factory activity in May, raising concerns about kiwi exports given China’s role as a key trading partner.

• S&P 500 (US500) 5,935.94 +24.25 (+0.41%)
• Dow Jones (US30) 42,305.48 +35.41 (+0.084%)
• DAX (DE40) 23,930.67 −66.81 (−0.28%)
• FTSE 100 (UK100) 8,774.26 +1.88 (+0.021%)
• USD Index 98.71 −0.62 (−0.62%)

News feed for: 2025.06.03

• Australia Monetary Policy Meeting Minutes at 04:30 (GMT+3);
• Caixin China Manufacturing PMI (m/m) at 04:45 (GMT+3);
• Switzerland Consumer Price Index (m/m) at 09:30 (GMT+3);
• Eurozone Consumer Price Index (m/m) at 12:00 (GMT+3);
• Eurozone Unemployment Rate (m/m) at 12:00 (GMT+3);
• US JOLTs Job Openings (m/m) at 17:00 (GMT+3).

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