World indices reached new heights on Monday, driven by an Asian stocks rally, while the dollar weakened ahead of crucial trade discussions between the United States and China set to take place in London.
Market Movements and Trade Discussions
The MSCI’s broad index of global shares rose by 0.2%, reaching a new peak of 893.88. European markets held steady, and Asian markets closed on a positive note. Japan’s Nikkei index saw a nearly 1% increase, China’s CSI300 index went up by about 0.3%, and the Shanghai Composite index improved by 0.4%.
Top trade officials from the U.S. and China are scheduled to meet, with the focus expected to be on critical minerals, an area where China has significant production dominance. Kyle Rodda, a senior financial market analyst at Capital.com, noted that trade policy remains a major macroeconomic uncertainty. He suggested that progress in talks could provide a fresh boost to markets as the week begins.
U.S. Representation and Economic Indicators
U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer will represent Washington in the discussions, as confirmed by President Donald Trump. China’s Vice Premier He Lifeng will attend the inaugural meeting of the China-U.S. economic and trade consultation mechanism in Britain.
U.S. stock markets ended sharply higher on Friday following the release of monthly jobs data, which alleviated some concerns about the impact of Trump’s tariff policies on the economy. However, tensions were heightened by a standoff in Los Angeles, prompting Trump to deploy the California National Guard in response to protests against his immigration policies.
Currency and Economic Data
The dollar declined by 0.5% against the yen, reaching 144.09, after a 0.9% increase on Friday. The euro rose by 0.2% to $1.1422, while the British pound traded at $1.3568, marking a nearly 0.4% rise.
China’s Economic Challenges
Data released on Friday showed U.S. job growth in May was slower than expected. Meanwhile, China’s economic reports on Monday indicated a slowdown in export growth to a three-month low and worsening factory-gate deflation, highlighting the trade war’s impact.
Upcoming U.S. Inflation Data
Attention is now on the U.S. inflation data due on Wednesday, which could influence expectations for potential Federal Reserve rate cuts. The Fed is currently in a blackout period before its policy decision on June 18. Bruno Schneller, managing director at Erlen Capital Management, remarked that while markets have paused after a strong May, underlying vulnerabilities are emerging. He expects the U.S. CPI to show another increase, indicating persistent inflation.
Gold prices increased by approximately 0.35% to $3,322 per ounce after a 1.3% drop on Friday. U.S. crude oil prices fell by 16 cents to $64.42 per barrel, following a 1.9% rise late last week.
