Friday Afternoon Coffee - Markets Update - 9 May 2025 - Markets Edge Higher Ahead of U.S.-China Trade Talks; Gold, Oil Climb

The Trade Academy Team
5 days ago
2 min read

Markets Update: Global stocks ticked higher Friday as investors embraced cautious optimism around upcoming U.S.-China trade negotiations, while the dollar weakened and gold extended its rally to a new all-time high.

Global Markets Roundup: 9 May 2025

Equities worldwide notched modest gains following news of a limited U.S. trade agreement with the UK, the first since President Donald Trump’s recent tariff pause. Traders looked ahead to a key meeting set for Saturday in Switzerland, where top U.S. officials will meet China’s chief economic envoy in an attempt to ease tensions.

Global Stocks Rise on Trade Hopes

The MSCI All Country World Index rose 0.24% to 847.90, eyeing a third straight day of gains. In Europe, Germany’s DAX touched a record high, while the pan-European STOXX 600 advanced 0.43%.

On Wall Street, gains were uneven in midday trading:

Dow Jones Industrial Average: -56.51 points (-0.14%) to 41,311.94
S&P 500: +4.61 points (+0.08%) to 5,668.55
Nasdaq Composite: +35.78 points (+0.20%) to 17,963.92

Matt Stucky of Northwestern Mutual Wealth Management, while cautioning that markets may be underestimating the risk of economic disruption from tariff escalations.

Dollar Weakens, Yields Ease

The U.S. dollar slipped as investors looked toward weekend trade talks and digested Trump’s comments suggesting a possible reduction in China tariffs to 80%, down from the current 145%.

Dollar Index DXY: -0.37% to 100.28
Euro EURUSD: +0.36% to $1.1267
Yen USDJPY: -0.58% to 145.07

Bond yields retreated slightly amid thin trading and uncertainty:

10-year U.S. Treasury yield: down 1 basis point to 4.363%
30-year yield: up 0.3 basis points to 4.8343%
2-year yield: down 3.9 basis points to 3.856%

Gold Breaks Higher as Safe-Haven Demand Builds

Gold prices surged, fueled by a weaker dollar and heightened investor anxiety over trade.

Spot gold: +1.04% to $3,339.78/oz
U.S. gold futures: +1.18% to $3,335.50/oz

Oil Advances on Trade Optimism

Crude prices rose in anticipation of progress in U.S.-China negotiations, with both WTI and Brent crude finishing the week higher.

WTI Crude (CL1!): +1.35% to $60.72/barrel
Brent Crude (BRN1!): +1.26% to $63.63/barrel

Cryptos Gain, Commodities Mixed

Bitcoin extended its rally to a fourth straight session, reaching its highest level since January:

Bitcoin (BTCUSD): +0.55% to $103,191.87
Ethereum (ETHUSD): +6.12% to $2,318.17

Arabica coffee hovered near $3.95/lb as Brazil’s harvest progressed under tight supply conditions. Cocoa futures rebounded above $9,300/tonne, the highest since April 25, driven by currency effects and crop weather concerns.

Grains were mixed:

Corn (ZC1!): +2¼ cents to $4.49¾/bushel
Soybeans (ZS1!): +6¾ cents to $10.51¾/bushel
Wheat (ZW1!): -7½ cents to $5.20¾/bushel, with July futures hitting a lifetime low

Outlook

As investors await outcomes from the weekend’s U.S.-China talks, market sentiment remains fragile. India’s proposal to narrow its tariff gap with the U.S. added to hopes of broader de-escalation, but uncertainty lingers.

Looking forward, refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team