MARKET WRAPS

Stocks mostly edged lower on Monday, starting off a quiet week following the ECB's 25-basis-point interest-rate cut.

Data on eurozone industrial production and foreign trade data for April are likely to be the highlight of the week as investors look to see how tariffs have affected the economy.

In the U.K, a slew of data in the coming week will give signs of how well the economy is faring.

Oversees, China's exports to the U.S. suffered their biggest decline since 2020, while shipments to the rest of the world jumped.

The Japanese economy shrank less than initially estimated in the first quarter but remained at risk of technical recession.

U.S Markets:

Futures edged higher, buoyed by optimism around U.S.-China trade talks .

Investors expect pressure on Xi Jinping's representatives to speed up exports of rare-earth minerals and magnets.

Meanwhile, focus will also be on inflation data for May and any signs of tariffs feeding through into prices ahead of a decision by the the Fed later this month.

Forex:

The dollar fell at the start of the week as Friday's better-than-forecast U.S. jobs data failed to provide lasting support to the currency.

The economy remained shaky, keeping the dollar vulnerable as Fed rate cuts are likely in the second half of the year, MUFG said.

Tighter immigration policies under Trump have also triggered social unrest over the weekend in Los Angeles.

ING said that good news from the new trade talks between the U.S. and China could help to calm market sentiment, helping risky assets and the dollar.

Trump said Friday that the scheduled talks with China "should go very well."

Investors will want reassurance that there is no longer a threat of 100%-plus tariffs, ING said.

Bonds:

The coming week will be a big one for the U.S. bond market, XTB said.

On Thursday, the U.S. will auction 30-year Treasury bonds,with yields hovering close to 5%.

If the talks with China go badly then sour risk sentiment could mean demand at the auction is weak, it added.

Eurozone bond yields fell, reversing some of last week's rise.

Falls are likely to be limited, however, given that the ECB last week flagged that it was close to the end of its rate-cutting cycle, Commerzbank said.

"As the ECB's new rhetoric and decent U.S. payrolls are still sinking in, the downside for yields appears limited."

Energy:

Oil prices ticked lower following the weak Chinese data, but remained broadly supported by optimism surrounding the trade talks.

Meanwhile, oil imports declined from the previous year, as weaker refinery operating rates and tighter U.S. sanctions on Iranian oil contributed to lower shipments, market watchers said.

Focus was shifting to Wednesday's U.S. inflation data.

Metals:

Gold futures were broadly flat amid mixed macroeconomic signals.

The precious metal was up more than 23% year to date, though its rally has slowed as crucial data pointed to a stronger-than-expected U.S. economy.

Friday's nonfarm payroll data showed falling long-term unemployment, reducing inflation concerns and pressure on the Feds to ease monetary policy, XMarabia said.

Gold Chart

Comex gold futures were likely to continue to consolidate, based on the daily chart 's triangle pattern, Phillip Nova said.

EMEA HEADLINES

WPP CEO Mark Read to Retire at Year-End

WPP's Mark Read will step down from his role as chief executive to retire after seven years at the helm.

The U.K. advertising and marketing-services group said Monday that Read-who has been at the company for more than 30 years-will retire from the board and as CEO on Dec. 31.

L'Oreal to Buy Majority Stake in British Skincare Brand Medik8

L'Oreal said it has signed an agreement to acquire a majority stake in British skincare brand Medik8.

The company said that Medik8 has strong global potential, as well as high levels of proven efficacy at an accessible price point. The acquisition will strengthen its Luxe portfolio, L'Oreal said.

Qualcomm to Buy Alphawave IP for $2.4 Billion

U.K. semiconductor company Alphawave IP Group agreed to a $2.4 billion takeover from U.S. peer Qualcomm after two months of talks.

The London-listed company said Monday that accepting shareholders will get $2.48 in cash for each share held. The price equates to 183 pence a share and is a 96% premium to the company's closing price of 93.50 pence on March 31, the day before Qualcomm announced its interest.

GLOBAL NEWS

Gaza-Bound Activist Boat With Greta Thunberg Intercepted, Boarded by Israel

Israeli forces intercepted and boarded a sailboat carrying a group of activists, including climate campaigner Greta Thunberg, who planned to bring humanitarian aid to Gaza in defiance of an Israeli blockade on the enclave.

The Israeli Foreign Ministry said early Monday that the ship was "safely making its way to the shores of Israel" and that the passengers were expected to return to their home countries. The ministry also posted a video of masked Israeli military personnel handing out sandwiches and bottled water to the activists.

Taiwan Tries to Purge Its Ranks of China Sympathizers

TAIPEI-Taiwan has embarked on a mission to purge any allies of Beijing from its civil service in an escalating battle against China's influence-vetting hundreds of thousands of workers and threatening to revoke the citizenship of those found to be Chinese citizens.

For the first time since President Lai Ching-te launched a campaign against what he described as Chinese infiltration in Taiwan, authorities said last week that they were taking action against a teacher who obtained permanent residence status in China, a step short of citizenship.

L.A. Protests Stretch Into Third Night After Chaotic Sunday

LOS ANGELES-Standoffs between protesters and law-enforcement officers in downtown Los Angeles escalated Sunday night, capping a tense day in which demonstrators, police, rubber bullets and helicopters overran a neighborhood that is home to City Hall and federal buildings.

During a third day of demonstrations opposing federal immigration operations in a city with a large immigrant population, mounted police galloped by on horses and law enforcement used tear gas to move crowds. Protesters covered the neighborhood in graffiti that said "F- ICE," set at least five Waymo driverless taxis on fire, and threw rocks and water bottles at officers.

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(END) Dow Jones Newswires

June 09, 2025 05:16 ET (09:16 GMT)

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