11 June 2025
US stocks extended gains on Tuesday amid investor optimism over progress on US-China trade negotiations. The S&P 500 was up 0.5%.
US Treasuries were little changed ahead of US CPI inflation data. 10-year yields ended flat at 4.47%.
European stock markets were mixed on Tuesday as US-China trade talks continued in London. The Euro Stoxx 50 closed down 0.1%. The French CAC ended up 0.2% while the German DAX lost 0.8%. The UK FTSE-100 edged 0.2% higher.
European government bonds rose. 10-year German bund yields fell 4bp to 2.52%, as 10-year French yields also ended 4bp lower at 3.20%. In the UK, 10-year gilt yields fell 9bp to 4.54%, following soft employment and wage growth data.
Asia stock markets traded mixed on Tuesday as investors continued monitoring US-China trade talks. Japan’s Nikkei 225 advanced 0.3% as tech shares tracked their US peers’ overnight gains, while Korea’s Kospi rose 0.6%. Hong Kong’s Hang Seng and China’s Shanghai Composite ended 0.1% and 0.4% lower, respectively. Elsewhere, India’s Sensex ended little changed.
Crude oil prices fluctuated near seven-week highs on Tuesday with US-China trade talks in focus. WTI crude for July delivery settled 0.5% lower at USD65.0 a barrel.
In the US, the NFIB index of small business confidence increased to 98.8 in May from 95.8 in April, given reduced trade tensions and more stable financial markets.
In Brazil, CPI inflation nudged lower to 5.3% yoy in May, from 5.5% yoy in April, after having been on an upward trend since H1 2024.
In the US, CPI inflation is expected to pick up slightly to 2.4% yoy in May, from 2.3% yoy in April, as core goods prices may show initial signs of higher tariffs, whilst an unwinding of one-off factors may lift services inflation.
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