MARKET WRAPS

European stocks rose on Wednesday, and Trump's '"Revenge Tax"' looked likely to spark investor interest in European markets.

Investor interest in European equities could be rekindled after a provision in Trump's tax bill dubbed the "revenge tax" could hurt foreign appetite for U.S. assets , Goldman Sachs said.

Meanwhile, Trump signed an executive order Tuesday raising the tariffs on imported steel and aluminum to 50%, effective immediately.

Mining stocks lead the gains on the FTSE 100 index in early trade.

U.S. Markets:

Stock futures traded higher as investors hope for a potential call between Trump and Chinese leader Xi Jinping to temper tensions .

Forex:

The dollar recovered after dropping to six-week lows against a basket of currencies early this week.

"Stronger domestic data, with hirings advancing to the highest level in almost a year, prompted a turnaround in the greenback," Danske Bank said.

Focus now turns to further data on the U.S. labor market, including Wednesday's ADP private payrolls data, Thursday's weekly jobless claims and Friday's key nonfarm payrolls.

Bonds:

Treasurys were a powerful portfolio diversifier but higher yields were necessary to add more to portfolios , Russell Investments said.

Thirty-year Treasury yields were nearing the 5% level again after better-than-expected labor market data.

Danske Bank expected the yield to rise above 5% as investors required a higher premium in anticipation of the Senate's approval of Trump's budget bill.

Ten-year Bunds were running into resistance below 2.5%, Commerzbank said.

The market was looking through the surprisingly low eurozone core inflation, amid headwinds from Treasurys and oil.

Macro input is set to come from the U.S. on Wednesday with ISM services data due.

"Another increase above 50 and a prices paid component at two-year highs could provide headwinds," it said.

Energy:

Oil prices were broadly stable in early trade as investors weighed rising OPEC+ output and the threat of wildfires in Canada's energy hub.

The benchmarks rose more than 1% in the previous trading session due to supply concerns after the Alberta wildfires shut in more than 300,000 barrels a day of heavy crude production.

Prices also found support from expectations of a U.S. crude inventory draw and dimming prospects of an imminent nuclear deal with Iran after Trump said he won't allow uranium enrichment.

Gas

European natural-gas prices rose as worries over the pace of storage replenishment resurfaced.

ANZ said the pressure was due to challenges in auctioning capacity at prices sufficient to cover operating costs.

They warned the shortfall could prompt government intervention.

Metals:

Gold futures rose on persistent tariff concerns, geopolitical worries and a weaker dollar.

RBC Capital Markets hiked its 2025 gold average price expectations by 5% to $3,163 and its 2026 average price expectation by 12% to $3,162.

Gold chart

Comex gold futures may revert to consolidation below $3,400, based on the daily chart , RHB Retail Research's Joseph Chai says in a note.

Latest price movements reaffirmed the $3,400 level acting as immediate and strong resistance.

EMEA HEADLINES

Remy Cointreau Pulls Long-Term Targets on Economic, Tariff Uncertainty

Remy Cointreau withdrew its targets for fiscal 2030 as it warned that tariff and macroeconomic uncertainty cloud its outlook.

The maker of Remy Martin cognac and Cointreau orange liqueur said Wednesday that it seeks to return to mid-single-digit sales growth on an organic basis in fiscal 2026, after two years of double-digit declines, but that further increases in custom duties in the U.S. and China would threaten this.

Swedbank Targets Return on Equity of At Least 15%

STOCKHOLM-Swedbank is targeting a return on equity of at least 15% in the next few years, but warned of uncertainty amid geopolitical tensions.

The Swedish lender said the new target applies through 2027 and is in line with previous guidance that runs through this year.

Far-Right Leader Geert Wilders Torpedoes Dutch Coalition Over Immigration

The Dutch governing coalition collapsed Tuesday after far-right politician Geert Wilders pulled out of the ruling bloc, accusing the other parties of not doing enough to curb immigration.

Dutch Prime Minister Dick Schoof said hours later that he would resign, setting the stage for a snap election that will test whether Wilders, one of Europe's most controversial politicians, can win power.

GLOBAL NEWS

Wall Street Is Marketing Private Equity Investments. The Rich Are the Targeted Buyers.

As pension funds, sovereign-wealth funds, endowments, and other institutional investors pare private-equity stakes to generate cash and rebalance their portfolios, Wall Street has gone looking for new buyers: retail investors who have long been shut out of private markets.

There's a good reason this buyer base is attractive. Individual investors have a lot of cash-half of all global wealth, or roughly $140 trillion, according to Bain & Co. And they represent only 16% of assets held in alternative investments, which include private equity, the firm said in a 2023 report.

Trump Seeks Congress's Approval for Package of DOGE Cuts

WASHINGTON-With Elon Musk gone, the next act of streamlining government is now set to play out on Capitol Hill-and publicly funded media and foreign aid are first to be targeted.

The White House sent Congress a $9.4 billion rescissions package Tuesday that would codify some spending cuts made by the Trump administration, effectively asking lawmakers to reverse spending they previously voted into law. The White House also is weighing the use of a separate, controversial process called impoundment to claw back funds, sidestepping the legislative branch and setting up a likely legal battle.

Elon Musk Calls Trump Megabill a 'Disgusting Abomination'

WASHINGTON-Former White House cost-cutting czar Elon Musk called President Trump's "big, beautiful" tax and spending package a "disgusting abomination," stepping up his criticism just as the Senate is trying to quickly pass the measure and get it signed into law by July 4.

Musk's comments are his latest sharp words about the package, which includes tax cuts as well as reductions to spending on Medicaid and food assistance. Last month, he gave new fuel to GOP critics of the Republicans' multitrillion-dollar agenda, saying that the current measure failed to reduce the federal deficit.

Some of Trump's Biggest Inaugural Donors Benefit From Early Government Actions

The biggest contributor to President Trump's inauguration was chicken processor Pilgrim's Pride, which gave $5 million. In April, its Brazilian parent company, JBS, received government approval for a U.S. stock listing that it had long sought.

The second largest donor was the cryptocurrency company Ripple, which gave about $4.9 million. In May it reached a settlement with the Securities and Exchange Commission to resolve a long-running lawsuit, sending its coin soaring.

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(END) Dow Jones Newswires

June 04, 2025 04:53 ET (08:53 GMT)

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