On Thursday, Asian shares saw a rise, driven by optimism surrounding a potential trade deal between the U.S. and Britain, as well as anticipation ahead of U.S.-China trade talks. Nasdaq futures jumped 1.1% and S&P 500 futures increased by 0.8%, signaling investor confidence. The positive sentiment extended to European markets, with the pan-European STOXX 600 index gaining 0.9%. President Trump’s announcement of a major trade deal with an unspecified country boosted investor outlook, particularly after the New York Times indicated the deal could be with Britain.
Markets are eagerly awaiting a key round of trade talks between Washington and Beijing scheduled for Saturday. These discussions could be a pivotal step in resolving the ongoing trade conflict between the U.S. and China, which has impacted global markets. In addition, investors are closely monitoring the Bank of England’s policy meeting, where expectations point to a quarter-point rate cut. While no immediate changes are expected from central banks in Sweden and Norway, their decisions remain under scrutiny.
Following the Federal Reserve’s decision to keep interest rates unchanged, investors adjusted their expectations for future rate cuts. Fed Chair Jerome Powell highlighted rising risks from inflation and unemployment, leading markets to reduce the likelihood of a June rate cut to 20%. The chance of a July rate cut remains at 70%. These mixed signals from the Fed, coupled with growing economic uncertainties, prompted a minor rally in longer-dated Treasury bonds and a rebound in the U.S. dollar.
In Asia, stocks showed positive movement, with Japan’s Nikkei gaining 0.5% and China’s blue-chip index rising by 0.7%. Hong Kong’s Hang Seng index also saw an increase of 0.8%, as the region recovers from previous losses linked to trade concerns. Meanwhile, on Wall Street, shares surged following reports that the Trump administration may relax restrictions on the export of advanced AI chips, which significantly boosted Nvidia shares by 3%.
In the commodities market, oil prices bounced back after a decline the previous day. U.S. crude futures rose 0.7%, while Brent crude increased by 0.6%. Meanwhile, gold prices saw a slight rise, reaching $3,374.5 per ounce, supported by uncertainties regarding the Fed’s policy outlook. Despite this, gold remains below its record high of $3,500 per ounce, as investors remain cautious ahead of key policy decisions and trade developments.
Source: Reuters