Equity-index futures climbed as trade negotiations between China and the US spurred optimism tensions between the world’s two largest economies will ease. Futures contracts for the S&P 500 and the Nasdaq 100 both climbed 0.6% on news US and Chinese officials will meet this week in Switzerland. Asian stocks gained 0.2% - they pared earlier gains of as much as 0.7% - as China reduced its policy rate and lowered the amount of cash lenders must keep in reserve. A gauge of the dollar’s strength advanced, snapping three days of declines. Gold dropped as much as 2.1% and Treasuries fell. The Indian rupee weakened slightly and stocks in Mumbai gained 0.2% as investors looked beyond the India-Pakistan military strikes and focused on trade talks. On Tuesday, India and the UK agreed to a landmark trade deal.
The US-China meeting will be the first confirmed trade talks between the countries since President Donald Trump declared sweeping tariffs last month, led by punishing levies on China. While the announcement of talks is an indication that trade tensions may be thawing, and provided the markets with a temporary reprieve, further rallies will depend on whether the discussions produce significant outcomes. The planned talks may encourage investors eager to see a reduction in tariffs that risk crippling trade between the countries. Trump placed duties as high as 145% on many Chinese imports, and Beijing retaliated with import taxes of 125% on American goods. The moves prompted companies to withdraw earnings guidance and threatened to drive up prices for manufacturing equipment as well as day-to-day items such as clothing and toys. On Tuesday, Trump said he would dictate tariff levels and trade concessions for partners looking to avoid higher duties, appearing to move away from the idea that he would engage in back-and-forth negotiations. US Treasury Secretary Scott Bessent, in an interview on Fox News, said the current tariff rates aren’t sustainable. The talks on Saturday and Sunday will center on de-escalation rather than a big trade deal, “but we’ve got to de-escalate before we move forward,” he said. In geopolitical news, India said it conducted targeted military strikes against Pakistan, an expected move after it pledged retaliation for a militant attack last month in Kashmir that killed 26 people. Pakistan said it shot down five Indian airplanes. Meanwhile, shares in Hong Kong rose 0.5% - they pared earlier gains of as much as 2.4% - as China lowered rates. Beijing is ramping up efforts to help an economy caught in a second trade war with the US. The People’s Bank of China cut the seven-day reverse repurchase rate to 1.4% from 1.5%, according to Governor Pan Gongsheng. The central bank will also trim the reserve requirement ratio by half a percentage point, Pan said at a briefing on Wednesday, without saying when that would be effective. Investors are also focused on Wednesday’s rate decision by the Federal Reserve, with traders expecting policymakers to stay on hold.
While Trump has been ratcheting up pressure on the central bank to resume cutting rates, officials have mostly emphasized a need to wait and see how trade policies announced last month affect the economy. US After Hours Busy earnings session; PRCH +15.1%, NRDS +13.7%, EA +6%, CRUS +5.1%, ALGT +4.4% higher on earnings; VSTS -28.2%, UPST -18.1%, ANET -6.7%, SMCI -6% lower on earnings
Macro :
- India Says It Hit Terrorist Camps in Pakistan, No Military Sites
- Nuclear-Related Shares Rally on Trump Power Order Report
- Merz’s Chancellor Vote Fiasco Raises Doubts Over Germany’s Reset
- Chinese Stocks Will Be Delighted to See PBOC Cutting RRR 0.5%
Keep an eye on :
- AD NA : Ahold Delhaize 1Q Adjusted Operating Margin Misses Estimates
- AKBRP NO : Aker BP 1Q Revenue Beats Estimates
- AMBU DC : Ambu 2Q Revenue Meets Estimates; FY Outlook Maintained
- AAD GY : Amadeus Fire 1Q Operating Ebita EU4.30M Vs. EU14.4M Y/y
- ANORA FH : Anora Group Oyj 1Q Net Sales Miss Estimates
- AKE FP : Arkema 1Q Ebitda Margin Misses Estimates
- ARCAD NA : Arcadis 1Q Net Revenue EU972M
- ARYN SW : Aryzta Plans Resuming Capital Returns Via Divs, Buybacks
- AG1 GY : AUTO1 Boosts FY Adjusted Ebitda Forecast
- CS FP : AXA 1Q Comparable Revenue +7%
- BA/ LN : BAE Keeps Expectations Unchanged
- BPSO IM : Pop. Sondrio 1Q Total Income EU419.4M Vs. EU409.2M Y/y
- CLAB SS : Cloetta 1Q Operating Profit SEK350.0M Vs. SEK193M Y/y
- COTY US : Coty Cuts FY Adjusted EPS Forecast, Beats Estimates
- DEMANT DC : Demant Lowers Guidance on Weaker Hearing Aid Growth: Street Wrap
- DIA IM : DiaSorin 1Q Adjusted Ebitda Beats Estimates
- DNB NO : DNB Bank 1Q Return on Equity Beats Estimates
- ELE SM : Endesa 1Q Net Income Beats Estimates
- FRE GY : Fresenius SE 1Q Ebit Before Special Items Meets Estimates (1)
- EQNR NO : EP Petroecuador Awards Four Export Contracts Worth $529.5M
- FDR SM : Fluidra 1Q Net Income Misses Estimates
- HARVIA FH : Harvia 1Q Adjusted Operating Profit Beats Estimates
- INTRUM SS : Intrum 1Q Revenue SEK4.28B Vs. SEK4.43B Y/y
- DEC FP : JCDecaux 1Q Organic Adjusted Revenue Beats Estimates
- JUN3 GY : Jungheinrich 1Q Ebit Beats Estimates
- JYSK DC : Jyske 1Q Pretax Profit Beats Estimates; FY Outlook Maintained
- KER FP : Kering Names New Leadership at Ginori 1735 and Brioni
- KCO GY : Kloeckner Sees 2Q Adjusted Ebitda EU60M to EU90M
- LDO IM : Leonardo Forms Aeronautics Division Headed by Stefano Bortoli
- LTMC IM : Lottomatica Maintains FY Adjusted Ebitda Forecast
- LOOMIS SS : Loomis 1Q Net Sales Meet Estimates
- MSFT US : OpenAI Plans to Slash Revenue Share to Microsoft After Restructuring
- NOS PL : NOS 1Q Revenue EU421.4M Vs. EU403.3M Y/y
- NOVOB DC : Novo 1Q Ebit Beats Estimates
- OR FP : Coty Cuts FY Adjusted EPS Forecast, Beats Estimates
- RSGN SW : R&S Group Holder Offers Shares: Terms
- RESURS SS : Resurs Holding 1Q EPS SEK0.41 Vs. SEK0.16 Y/y
- RIVN US : Rivian Cuts EV Delivery Forecast, Sees Tariffs Hurting Demand
- SCHA NO : Schibsted 1Q Ebitda Beats Estimates
- SCR FP : Scor 1Q Net Income Beats Estimates
- SHL GY : Siemens Healthineers Widens FY Adjusted EPS Forecast
- STB NO : Storebrand 1Q Pretax Profit Misses Estimates
- TOM NO : Tomra 1Q Revenue EU306M
- VLA FP : Valneva 1Q Revenue Beats Estimates
- VLK NA : Van Lanschot Kempen 1Q Total Client Assets EU166.2B
- VIE FP : Veolia 1Q Ebitda Meets Estimates
- VNA GY : Vonovia Maintains FY Adjusted Ebitda Forecast
- VNA GY : Vonovia Taps Vodafone CFO Luka Mucic to Succeed Rolf Buch as CEO
- WW US : WW International Sinks on Plan to File for Chapter 11 Bankruptcy