European stocks rebounded, with the pan-European index ending a three-day decline and closing up 1%. The automotive sector rose nearly 2%, with Stellantis gaining 5%. The U.S. dollar index hit a nearly six-week low, while the British pound reached a three-year high. The New Taiwan dollar closed at a two-year high, and Bitcoin surged by over $3,000 at one point. Gold retreated from a two-week high, with futures dropping more than 1%.
The temporary easing of U.S.-EU tariff tensions spurred a rebound in European stocks, with tariff-sensitive automotive sectors leading the gains. The euro strengthened to a monthly high, while the U.S. dollar dipped to a one-month low. High-risk cryptocurrency Bitcoin briefly surpassed the $11,000 mark. Safe-haven demand waned, pushing gold lower. Due to the U.S. Memorial Day holiday, trading volumes were lighter, and U.S. markets were closed on Monday. Ahead of European trading, reports indicated that U.S. President Trump agreed to delay imposing 50% tariffs on the EU from June 1 to July 9. European markets opened higher, with Germany’s DAX up over 1.7%, France’s CAC 40 gaining 1.3%, and the Euro Stoxx 50 rising more than 1.6%. During European trading, U.S. stock futures also climbed over 1%. The automotive sector led the rally, with Stellantis up 5%, though Porsche’s 3.3% decline capped gains. Luxury stocks with U.S. exposure also advanced, with Kering, LVMH, and Richemont each rising about 1%. Analysts noted, “Markets seem to dance to Trump’s tune: threats, pullbacks, and rapid rebounds as speculative investors anticipate concessions. Today’s confirmation reinforced the ‘Trump playbook,’ increasingly seen as a winning strategy for risk-tolerant investors.” The dollar’s weakness, easing tariff tensions, and foreign inflows into Asia-Pacific assets supported gains. The pound extended Friday’s rally, hitting a three-year high, while the New Taiwan dollar closed at a two-year peak. Bitcoin and gold continued their inverse relationship, with Bitcoin surging over $3,000 and gold retreating from a two-week high. U.S. stock futures maintained Friday’s gains, with Dow futures up 400 points. European stocks opened higher on Monday, with the Stoxx 600 closing up 1%.U.S. President Trump postponed the threat of imposing 50% tariffs on the EU, bringing relief to the markets. Germany’s DAX index closed nearly 1.7% higher, while Denmark’s index surged over 2.4%.
U.S. equity futures: At the New York close, S&P 500 futures rose 1.30% from last week’s close to 5,882.80 points. Dow Jones Industrial Average futures gained 1.1% to 42,100.45 points, and Nasdaq 100 futures climbed 1.50% to 19,146.81 points. Pan-European stocks: The STOXX Europe 600 index closed 0.99% higher at 550.50 points, maintaining high volatility after a gap-up opening. The Eurozone STOXX 50 index rose 1.30% to 5,395.33 points, also sustaining high volatility post gap-up. National indices: Germany’s DAX 30 advanced 1.68% to 24,027.65 points. France’s CAC 40 increased 1.21% to 7,828.13 points. Italy’s FTSE MIB gained 1.30% to 39,988.48 points, with its banking sub-index up 1.18%. UK markets were closed. Sectors and stocks: Among Eurozone blue-chips, Stellantis rose 5.01% and Siemens gained 2.99%. In the STOXX 600, Zealand Pharma surged 10%, Thyssenkrupp climbed 8.76%, Frontline advanced 6.64%, and Embracer Group rose 6.27%. Canada’s stock index hit a record high, while bond yields broadly declined. Germany’s 2-year yield rose ~2 bps, while the 30-year yield fell over 2 bps. Canadian bonds: At the North American close, the 10-year yield dropped 2.5 bps, the 2-year yield dipped 0.50 bps, and the 5-year yield declined 2.3 bps. European bonds: At the European close, Germany’s 10-year yield fell 0.7 bps to 2.560%, gapping higher after Trump’s tariff deadline extension. The 2-year yield rose 1.8 bps to 1.782%, trading between 1.811%-1.780%, while the 30-year yield dropped 2.3 bps to 3.065%. UK bond markets were closed. The euro strengthened to a monthly high, while the Bloomberg Dollar Index hit its lowest since December 2023, nearing 1,200 points.The New Taiwan dollar rose against the US dollar during the session, breaking through the 30 mark to reach its highest level since May 5. The New Zealand dollar climbed to its highest level against the US dollar since November last year.
US Dollar: At the New York close, the ICE US Dollar Index fell 0.11% to 99.006, remaining in decline throughout the day. The Bloomberg Dollar Index dropped 0.05% to 1,210.71, with an intraday trading range of 1,211.51–1,207.08, showing a V-shaped trend during the Asian and European sessions. Non-US Currencies: The euro rose 0.19% against the US dollar, while the British pound gained 0.16%. The US dollar fell 0.05% against the Swiss franc. Among commodity currencies, the Australian dollar declined 0.13% against the US dollar, while the New Zealand dollar rose 0.26%. The US dollar edged up 0.04% against the Canadian dollar. Japanese Yen: At the New York close, the US dollar rose 0.16% against the yen to 142.79, with an intraday range of 142.23–143.08. The euro gained 0.35% against the yen, and the British pound advanced 0.32%. Offshore Renminbi: At the New York close, the offshore renminbi traded at 7.1768 against the US dollar, down 42 basis points from Friday’s close. The intraday range was 7.1616–7.1830. Cryptocurrencies: At the New York close, CME Bitcoin futures (BTC) rose 0.74% from Friday’s close to $110,000. CME Ethereum futures (DCR) gained 0.79% to $2,566.50. Spot gold fell, dropping over 1% intraday before rebounding. International oil prices rose about 1% earlier in the session before closing flat. Crude Oil: At the New York close, WTI crude futures were unchanged at $61.53 per barrel (as of 02:29 Beijing time), with no closing data due to the US market holiday. Brent crude for July delivery fell $0.04 (0.06%) to $64.74 per barrel. Gold: At the New York close, spot gold declined 0.41% to $3,343.84 per ounce, remaining in negative territory throughout the day. The intraday low of $3,323.83 was recorded at 17:26 Beijing time. COMEX gold futures fell 0.70% to $3,342.20 per ounce. Silver: At the New York close, COMEX silver futures edged up 0.01% to $33.645 per ounce. Copper: At the New York close, COMEX copper futures declined 0.34% to $4.8470 per pound. Risk Warning and Disclaimer: Markets involve risks; invest with caution. This article does not constitute personal investment advice and does not account for individual investment objectives, financial situations, or needs.Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investment decisions based on this content are made at their own risk.
