Trump holds a positive view towards Sino-US trade negotiations and said that an agreement will be reached with China when the time is right. Investors’ concern about trade prospects have temporarily eased, boosting the US stocks market and the US dollar. Trump denied planning to use military force against Iran, but warned that if there is a conflict, the US would send more than 120,000 US troops. The British government plans to submit the Brexit bill to the House of Commons in the week of June 3.
- The Dow Jones Industrial Average closed at 25,532.05 points, up 207.06 points or 0.82%. The Standard & Poor’s 500 Index closed at 2,834.41 points, up 22.54 points or 0.80%. The Nasdaq index closed at 7,734.49 points, up 87.47 points or 1.14%.
- US President Trump said that the talk on trade issue between China and the United States are processing good. The United States is in a favorable position in the negotiations and will reach an agreement with China when the time is right.
- Trump once again hinted that the Fed should take more measures to stimulate the economy in order to match with China’s practices. However, both the New York Federal Reserve and the Kansas City Federal Reserve Governor believe that the current monetary policy is appropriate and should be patient on the interest rate issue.
- The UK’s FTSE 100 index closed at 7,241.60 points, up 77.92 points or 1.09%. The Frankfurt DAX index closed at 11,991.62 points, up 114.97 points or 0.97%. The French CAC40 index closed at 5,341.35 points, up 78.78 points or 1.50%.
- The British government plans to submit the Brexit bill to the House of Commons in the week of June 3. The cross-party talks betweenTheresa May and Corbyn, the Labour Party leader, will continue on Wednesday.
- According to data from the Leibniz Centre for European Economic Research (ZEW), the Eurozone’s ZEW Economic Sentiment Index unexpectedly ended its five-month growth and recurring negative value, from 4.5 in April to minus 1.6 in May, lower than the market expectation of 5.
- Japan’s Nikkei 225 index closed at 21,067.23 points, down 124.05 points or 0.59%. The yen closed at 109.680 against the US dollar, down 0.009%.
- According to a survey conducted by the Cabinet Office of Japan, after the seasonal adjustment, Japan’s Service Industry Index increased from 44.8 in March to 45.3 in April, but it is still lower than the market expectation of 45.5.
- The Shanghai Composite Index closed at 2,883.61 points, down 20.10 points or 0.69%. The Shanghai and Shenzhen 300 Index closed at 3,645.15 points, down 23.58 points or 0.64%. The RMB closed at 6.882 against 1 US dollar, down 0.013%.
- China will release industrial, retail and investment data today. The year-on-year growth rate in industrial sector is expected to slow down to 6.5% in April, and the growth rate of retail sales is expected to drop slightly to 8.6%.
- China submits WTO reform proposal on May 13, identifying 4 priorities.