The Reuters article titled “Stocks, dollar gain on US-China trade talks, detail needed” provides an overview of global market movements as of May 11, 2025.

Global financial markets experienced a boost following signs of progress in U.S.-China trade negotiations, with Wall Street futures rising and the dollar strengthening against safe-haven currencies. U.S. Treasury Secretary Scott Bessent reported “substantial progress,” while Chinese officials indicated an “important consensus,” with plans to initiate a new economic dialogue forum. Although no definitive trade agreement was reached, the developments offered hope of reduced tariffs and a potential avoidance of a global recession. Markets reacted positively, with S&P 500 and Nasdaq futures rising 1.1% and 1.4%, respectively.

Geopolitical tensions also showed signs of easing, with a fragile ceasefire between India and Pakistan and proposed talks between Ukrainian President Volodymyr Zelenskiy and Russian President Vladimir Putin. Meanwhile, investor focus turned to upcoming U.S. economic data. Consumer price index (CPI) and retail sales figures for April are anticipated to show the effects of tariffs. The Federal Reserve remains cautious about lowering interest rates, with markets now expecting any potential rate cut likely in September rather than earlier. Increased risk appetite reduced gold prices, while oil prices rose on the optimism surrounding trade discussions, despite ongoing supply concerns from OPEC+ plans.

Source: Reuters