European and American trade war eased, US stock futures rose by more than 1%, euros rose by a new high this month, gold fell, and Bitcoin once returned to the 110,000 mark

Source: Wall Street Journal  

The temporary easing of US-EU tariff tensions led to a rebound in European stocks, with the tariff-sensitive automotive sector leading the gains. The euro strengthened, hitting a new high for the month, while the US dollar fell to a one-month low. High-risk cryptocurrency Bitcoin briefly surged past the $110,000 mark. As risk appetite returned, gold retreated.  

Due to the US Memorial Day holiday, financial market trading volumes were lighter than usual, and US stock markets were closed on Monday:  

Before the European market opened, according to Xinhua News Agency, on May 25 local time, US President Trump announced that after a phone call with European Commission President Ursula von der Leyen, he agreed to delay the imposition of 50% tariffs on the EU from June 1 to July 9. European stocks opened higher across the board, with Germany's DAX index rising over 1.7%, France's CAC 40 index gaining about 1.3%, and the Euro Stoxx 50 index climbing over 1.6%.  

During European trading hours, US stock index futures rose by more than 1%. The auto and parts index, sensitive to tariff pressures, led the gains, with the automotive sector up nearly 2%. Stellantis surged 5%. However, a 3.3% drop in Porsche's shares limited the sector's advance. Luxury stocks heavily exposed to the US market also rose. Shares of Kering, LVMH, and Richemont each gained about 1%.  

Analysts noted: "The stock market seems to be dancing to Trump's tune: first threats, then a pullback, followed by a quick rebound as speculative investors anticipate concessions from the US president. This morning's confirmation of such expectations reinforced the so-called 'Trump playbook,' which is increasingly seen as a successful strategy for risk-tolerant investors."  

Supported by a weaker dollar, easing tariff tensions, and foreign investors shifting to Asia-Pacific assets, the US dollar index hit a nearly six-week low. The British pound extended its gains from Friday, reaching a three-year high, while the New Taiwan dollar closed at a two-year high. Gold and Bitcoin continued their inverse relationship, with Bitcoin surging over $3,000 at one point, while gold fell from a two-week high, with futures dropping more than 1%.  

On Monday, US stock index futures maintained their gains of over 1% from Friday's close, with Dow futures up 400 points. European stocks opened higher, recouping losses from the previous session, with the pan-European Stoxx 600 index closing up 1%. Markets breathed a sigh of relief after President Trump delayed his threat to impose 50% tariffs on the EU. Germany's DAX index rose nearly 1.7%, while Denmark's benchmark index gained over 2.4%.  

**US Stock Index Futures:**  

- At the New York close, S&P 500 futures were up 1.30% from Friday's close at 5,882.80.  

- Dow Jones Industrial Average futures rose 1.1% to 42,100.45.  

- Nasdaq 100 futures gained 1.50% to 19,146.81.  

**European Stocks:**  

- The Stoxx Europe 600 index closed up 0.99% at 550.50, opening higher and maintaining gains throughout the session.  

- The Euro Stoxx 50 index rose 1.30% to 5,395.33, also opening higher and holding steady.  

**National Indices:**  

- Germany's DAX 30 index closed up 1.68% at 24,027.65.  

- France's CAC 40 index gained 1.21% to 7,828.13.  

- Italy's FTSE MIB index rose 1.30% to 39,988.48, with the FTSE Italia All-Share Banks Index up 1.18%.  

- UK markets were closed.  

**Sectors and Stocks:**  

- Among Eurozone blue chips, Stellantis surged 5.01%, and Siemens rose 2.99%.  

- Notable gainers in the Stoxx 600 included Zealand Pharma (+10%), ThyssenKrupp (+8.76%), Frontline (+6.64%), and Embracer Group (+6.27%).  

Canada's benchmark stock index hit a record closing high, while Canadian bond yields broadly declined. Germany's two-year bond yield rose about 2 basis points, while the 30-year yield fell over 2 basis points.  

**Canadian Bonds:**  

- At the North American close, Canada's 10-year benchmark bond yield fell 2.5 basis points, the two-year yield dipped 0.50 basis points, and the five-year yield dropped 2.3 basis points.  

**European Bonds:**  

- At the European close, Germany's 10-year bond yield fell 0.7 basis points to 2.560%, gapping higher after Trump extended the EU tariff deadline.  

- The two-year yield rose 1.8 basis points to 1.782%, staying in positive territory throughout the session (range: 1.811%-1.780%). The 30-year yield fell 2.3 basis points to 3.065%.  

- UK bond markets were closed.  

The euro strengthened to its highest level this month, while the Bloomberg Dollar Index hit its lowest since December 2023, nearing 1,200 points. The New Taiwan dollar broke through the 30 mark against the US dollar, reaching its highest level since May 5. The New Zealand dollar rose to its strongest level since November last year.  

**US Dollar:**  

- At the New York close, the ICE US Dollar Index fell 0.11% to 99.006, staying in negative territory all day.  

- The Bloomberg Dollar Index dropped 0.05% to 1,210.71, trading between 1,211.51 and 1,207.08, showing a V-shaped pattern during Asian and European hours.  

**Non-USD Currencies:**  

- EUR/USD rose 0.19%, GBP/USD gained 0.16%, and USD/CHF fell 0.05%.  

- Among commodity currencies, AUD/USD dipped 0.13%, NZD/USD rose 0.26%, and USD/CAD edged up 0.04%.  

**Japanese Yen:**  

- USD/JPY rose 0.16% to 142.79, trading between 142.23 and 143.08.  

- EUR/JPY gained 0.35%, and GBP/JPY advanced 0.32%.  

**Offshore RMB:**  

- At the New York close, USD/CNH was at 7.1768, down 42 pips from Friday's close, trading between 7.1616 and 7.1830.  

**Cryptocurrencies:**  

- Bitcoin futures (CME) rose 0.74% to $110,000.  

- Ethereum futures (CME) gained 0.79% to $2,566.50.  

Spot gold declined, dropping over 1% intraday before paring losses. Oil prices initially rose about 1% but ended flat.  

**Crude Oil:**  

- WTI futures were unchanged at $61.53 per barrel at the New York close, with no official settlement due to the US holiday.  

- Brent crude for July delivery fell 0.04% to $64.74 per barrel.  

**Gold:**  

- Spot gold fell 0.41% to $3,343.84 per ounce, staying lower all day and hitting an intraday low of $3,323.83 at 17:26 Beijing time.  

- COMEX gold futures dropped 0.70% to $3,342.20 per ounce.  

**Silver:**  

- COMEX silver futures edged up 0.01% to $33.645 per ounce.  

**Copper:**  

- COMEX copper futures fell 0.34% to $4.8470 per pound.  

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