U.S. Treasury Yields Surge as 30-Year Hits 22-Year High 
Japanese Yen Rebounds as Trump Flags Currency Weakness 
Asian Currencies Mixed as Dollar Holds Near Two-Month High 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
US Stock Futures Fall as Treasury Yields Surge Ahead of Trump-Xi Summit 
Dollar Holds Near Two-Month High as Yen Approaches 160 
Fed’s Hammack Says Bond Yield Surge Is Not Driven by Inflation Fears 
Australia Unemployment Hits Five-Year High Despite Strong Jobs Growth 
Wall Street Ends Flat as Oil, Treasury Yields and Fed Jitters Rattle Markets 
Trump, Xi Focus on Trade and AI at White House Summit 
U.S. Dollar Hits Two-Month High as Oil, Treasury Yields Surge 
Mexico-US Trade Talks Delayed to October as Tariff Negotiations Continue 
Oil Prices Jump 3% as Houthi Attack Revives Supply Fears 
Fed Unveils Stablecoin Rules Under GENIUS Act 
Germany’s 2026 Growth Outlook Strengthens on Fiscal Spending 
Soybean Futures Slip as Traders Await Trump-Xi Trade Signals 
Japanese Bank Stocks Surge as Bond Yields Fuel Rate Hike Bets 
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European equity markets rallied on Monday, driven by renewed optimism over U.S.-China trade negotiations. At 07:02 GMT, Germany’s DAX surged 1.8%, France’s CAC 40 gained 1.3%, and the U.K.’s FTSE 100 rose 1%, reflecting investor confidence in a potential de-escalation of the trade war between the world’s two largest economies.
Sentiment improved after the White House announced progress in trade talks with China over the weekend. Although no concrete tariff reductions were detailed, both sides are expected to make a joint statement soon, signaling a softer tone and possible resolution to months of escalating tensions that had seen tariffs exceed 100%.
Investor mood was further lifted by geopolitical developments, including a fragile ceasefire between India and Pakistan and Ukrainian President Volodymyr Zelenskiy’s willingness to meet Russia’s Vladimir Putin in Turkey for talks.
Markets also responded positively to expectations that the European Central Bank will cut interest rates in June, with analysts pricing in a 90% chance of a reduction. The ECB has already slashed rates seven times in the past year amid easing inflation, and additional cuts are anticipated later in 2025.
In corporate news, Italian bank UniCredit reported a record Q1 net profit of €2.8 billion, up 8.3% year-on-year, driven by higher fees and trading income despite a dip in net interest income. Meanwhile, German steelmaker Salzgitter posted weaker-than-expected results due to persistent economic weakness in Europe.
Oil prices also climbed on trade deal optimism. Brent crude rose 2.1% to $65.27 a barrel, while U.S. WTI crude futures increased 2.1% to $62.29, building on last week’s 4% gains fueled by hopes of a thaw in U.S.-China relations.
