On Monday, Wall Street stock futures rose, buoyed by optimism surrounding U.S.-China trade negotiations that hinted at a potential global recession being averted—though details remained scant. Geopolitical tensions appeared to ease, notably with a fragile ceasefire between India and Pakistan and Ukrainian President Volodymyr Zelenskyy expressing readiness to meet with Russian President Vladimir Putin for discussions in Turkey.
In Geneva, U.S. Treasury Secretary Scott Bessent heralded “substantial progress” in trade dialogues, while Chinese officials noted the achievement of an “important consensus” and plans for a new economic dialogue forum. A joint statement was anticipated later in the day, though key specifics regarding tariff rates were absent. Michael Brown, a strategist at Pepperstone, characterized the developments as a framework for ongoing discussions geared toward a broader trade agreement, but emphasized that a concrete deal had not emerged.
Despite hopes that the White House might reduce the current 145% tariff imposed on Chinese goods, uncertainty lingered, particularly as former President Trump appeared committed to maintaining extensive tariffs, which could hinder economic growth and inflate prices.
Market reactions reflected this optimistic sentiment: S&P 500 futures climbed by 1.2%, Nasdaq futures increased by 1.4%, and European indices also posted gains. Asian markets followed suit, with Japan’s Nikkei rising 0.3% and South Korea’s Kospi gaining 0.4%. In currency markets, the dollar strengthened 0.4% against the yen but retreated slightly from a five-week peak. The euro dipped, while the dollar index increased marginally, highlighting mixed trends in currency performance amid prevailing market optimism.
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