The record rally in US stocks looks set for more gains after the European Union reached a trade deal with President Donald Trump, further easing fears of a damaging trade war. Futures for the S&P 500 rose 0.4% after the index notched five successive all-time highs last week. Contracts for European stocks gained 1% after the deal, which imposes 15% tariffs on most of the bloc’s exports. The MSCI All Country World Index traded at a record while Asian shares were flat. The euro strengthened against the dollar. Crude oil edged 0.3% higher. Treasuries and a gauge of the greenback were steady. Markets, rebounding from April lows, are drawing comfort from the latest trade deal and signs the US and China will extend their truce, easing fears over Trump’s tariffs. That optimism faces a test this week with key data, Federal Reserve and Bank of Japan meetings and earnings from megacap companies that may shape the outlook for markets and the global economy. Trade deals are coming in “less worse than expected,” Chi Lo, senior market strategist for Asia Pacific at BNP Paribas Asset Management, said on Bloomberg TV. “That change in expectation and sentiment pushed up the markets over the past few weeks, and going forward, we do need to see the fundamentals come back to play.” Trump and European Commission President Ursula von der Leyen announced the EU deal on Sunday at his golf club in Turnberry, Scotland, although they didn’t disclose the full details of the pact or release any written materials. Rainwater Equity Founder and CEO Joseph Shaposhnik says he views “the S&P 500 in the US as the great growth stock of all countries today.”
The hard-fought deal will see the bloc face 15% tariffs on most of its exports, including automobiles, staving off a trade war that could have delivered a hammer blow to the global economy. Asian stocks with large European exposure rose Monday after the trade agreement. Meanwhile, shares in Hong Kong advanced after the South China Morning Post reported the US and China are expected to extend their tariff truce by another three months. US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are scheduled to meet in Stockholm on Monday. Shares in mainland China dipped 0.2%. Also, Goldman Sachs lifted its 12-month target for the MSCI China index on higher valuations, brighter prospects for a trade deal and a stronger yuan. Elsewhere in Asia, Japanese Prime Minister Shigeru Ishiba signaled he intended to stay in office despite a growing number of calls within the ruling party for him to step down. Ishiba faces a crunch meeting of his party’s lawmakers Monday. Later in the week, the Bank of Japan is set to keep interest rates unchanged with traders on alert for any signs of future guidance by the central bank. This week will also bring a US jobs report, while Magnificent Seven members Apple Inc., Amazon.com Inc., Microsoft Corp. and Meta Platforms Inc. are all due to report numbers. Robust corporate earnings have bolstered investor confidence in US stocks, as companies head for their highest share of beats since the second quarter of 2021. Progress in trade deals, positive economic data and corporate resilience have offset worries that stocks are overheating. More than 80% of S&P 500 companies have exceeded profit estimates, according to data compiled by Bloomberg Intelligence. In geopolitical news, Thailand and Cambodia are set to hold talks Monday to discuss an end to their deadly border clashes after Trump warned Washington wouldn’t make a trade deal with either country while the conflict continued.
Nikkei -0.75% Hang Seng +0.65% CSI +0.12% Shanghai -0.17% Shenzen -0.05%
Eur$ 1.1750 CNH 7.1693 CNY 7.1689 JPY 147.75 GBP 1.3435 CHF 0.7954 RUB 79.5332 TRY 40.5482 WTI$ 65.40 +0.37% Gold 3,340 +0.10% BTC 119,220 +0.35% ETH 3,883 +1.52%
S&P +0.47% Nasdaq +0.65% EuroStoxx +1.17% FTSE +0.52% Dax +1.16% SMI +0.88%
Macro :
- Trump Says He Reached a Trade Deal With EU
- US, China Expected to Extend Trade Truce by 90 Days, SCMP Says
- Traders Hedging Stocks at Record Highs Dabble in Exotic Options
- Goldman Trading Desk’s Clients Start Shorting Speculative Tech
- Goldman Trading Desk’s Clients Start Shorting Speculative Tech
- SocGen Strategists Hail Strong Start to US Earnings Cycle
- Lawmakers Press FDA to Target Compounded, Fake Weight-Loss Drugs
- China’s Industrial Profits Drop for Second Month Amid Price Wars
Keep an eye on :
Keep an eye on :
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- TSLA US : Samsung Texas Fab Will Make Tesla’s Next-Gen AI6 Chip, Musk Says