After markets remained closed on Monday due to Memorial Day, US stocks jumped on Tuesday in response to “positive” progress on US-EU trade talks and stronger-than-expected consumer confidence data. Keep reading to find out more about this and other news.
US Stocks Move Higher
Last week, on Friday, US President Donald Trump took to social media to announce that trade negotiations with the EU were “going nowhere” and, consequently, he was “recommending a straight 50% Tariff” on EU exports from 1 June.
Predictably, the markets reacted poorly to the news on Friday. However, two days later, the president was rowing back on his threats.
On Sunday, President Trump said that he would delay the new tariffs until 9 July following a “very nice call” with European Commission President Ursula von der Leyen. On Monday, he further noted “positive” progress with the EU on trade talks.
Following Friday’s steep losses, European stocks advanced on Monday in response to the president’s comments. The Germany 40 index and France’s CAC40 closed 1.68% and 1.21% higher respectively, whilst the pan-European Stoxx 50 index gained 1.29%.
On Tuesday, US markets, which had been closed due to Memorial Day on Monday, followed Europe’s lead. The Dow Jones, S&P 500 and the Nasdaq gained 1.78%, 2.05% and 2.47% respectively with big tech stocks leading the gains.
Besides the apparent progress on EU-US trade talks, US stocks were also buoyed by the Conference Board’s latest US consumer confidence data. The Consumer Confidence Index rose significantly more than expected in May, after five consecutive months of decline.
Oil Prices Inch Upwards
Oil prices rose slightly on Wednesday morning following news that the US government has blocked Chevron from exporting oil from Venezuela, under a new asset authorisation.
This, and reports that President Trump is mulling new sanctions on Russia, have raised concerns regarding supply. However, oil price gains were tempered by expectations that OPEC+ will boost output again at a meeting later this week.
Traders will also be watching the American Petroleum Institute’s weekly inventory report, which will be released later today.
Later Today
Today will also see two other important announcements.
Firstly, the Federal Open Market Committee (FOMC) will release the minutes from its meeting earlier this month in which it decided to hold interest rates steady. The minutes offer a detailed insight into the FOMC’s rate-setting meeting and its stance on monetary policy, as well as potentially providing clues regarding future rate decisions.
Then, once the US markets close, Nvidia will release quarterly earnings results, in which analysts expect revenue and earnings growth. However, investors will be paying particular attention to any information on how much US-China trade tensions could affect the AI company’s outlook.
Practise Trading on a Risk-Free Demo Account
Are you interested in practising trading without risking your funds? A demo trading account from Admiral Markets allows you to do just that, whilst trading in realistic market conditions. Click the banner below to open a demo account:
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets’ investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”). Before making any investment decisions please pay close attention to the following:
This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
The Analysis is prepared by an analyst (hereinafter “Author”). The Author, Roberto Rivero, is a contractor for Admiral Markets. This content is a marketing communication and does not constitute independent financial research.”
Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
Leveraged products, including Contracts for Difference (CFDs) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.
