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Thursday Afternoon Coffee - Markets Update - 05 June 2025 - Markets Seesaw as Trade Hopes Face Off Against Weak Data; ECB Cuts Rates, Oil Climbs
- The Trade Academy Team
- Jun 5
- 3 min read
Markets Update: U.S. stocks ended mixed Thursday as renewed hopes for progress in U.S.-China trade talks were tempered by a slew of disappointing economic indicators, setting the stage for Friday’s closely watched jobs report. Oil prices advanced, Treasury yields fluctuated, and gold pulled back after touching early highs.
Global Markets Roundup: 05 June 2025
Stocks Waver on Mixed Signals
Wall Street traded in a narrow range, with investors digesting a phone call between President Donald Trump and Chinese President Xi Jinping aimed at easing trade tensions. The call sparked cautious optimism as both leaders agreed to continue talks. However, persistent concerns about the health of the U.S. labor market weighed on sentiment.
Dow Jones Industrial Average: +62.89 points (+0.15%) to 42,491.60
S&P 500: -3.56 points (-0.06%) to 5,967.38
Nasdaq Composite: -40.84 points (-0.22%) to 19,419.88
Economic data added to the uncertainty. Weekly jobless claims rose to their highest level since October, while ADP’s private payrolls and Challenger layoffs data signaled continued weakness in the labor market. Imports also plunged 16.3%, narrowing the trade gap to its smallest since November 2023—another reflection of the ongoing impact of tariffs.
ECB Cuts Rates, Signals Pause Ahead
In Europe, the European Central Bank delivered a widely expected 25-basis-point cut, bringing key rates closer to neutral as eurozone inflation hovers near the 2% target. Still, ECB President Christine Lagarde hinted at a possible summer pause in the easing cycle, which trimmed earlier gains in European equities.
MSCI All-Country World Index: +0.17 points (+0.02%) to 889.10
STOXX 600: +0.16%
FTSEurofirst 300: +0.19% (+4.07 points)
Emerging Markets Index: +0.84% (+9.86 points) to 1,182.31
MSCI Asia-Pacific ex-Japan: +0.82% to 622.95
Nikkei 225: -0.51% (-192.96 points) to 37,554.49
Yields See-Saw on Data, Outlook
Treasury yields moved unevenly following the labor data and market speculation about future Fed actions.
10-year yield: +3 basis points to 4.395%
30-year yield: -0.2 basis points to 4.8856%
2-year yield: +5.1 basis points to 3.928%
Gold Slides, Dollar Firms
Gold prices fell as investor risk appetite improved modestly on the back of U.S.-China trade talks. Spot gold dipped 0.65% to $3,353.64 per ounce, while U.S. gold futures settled 0.72% lower at $3,349.20.
The U.S. dollar reversed earlier losses after soft data and ECB remarks influenced interest rate expectations.
Crude Gains Despite Supply Concerns
Oil prices rose, shrugging off bearish inventory data and Saudi price cuts. Optimism around the Trump-Xi conversation helped support crude.
WTI Crude (CL1!): +0.83% to $63.37/barrel
Brent Crude (BRN1!): +0.74% to $65.34/barrel
Commodities Mixed
Arabica coffee futures surged to near $3.60/lb—its highest level since May 27—as a stronger Brazilian real curtailed exports and triggered short-covering.
Grains posted mixed moves:
Soybeans (July): +0.5% to $10.50¼/bushel
Wheat (July): +0.4% to $5.45¼/bushel
Corn (July): -0.1% to $4.38½/bushel
Outlook
As markets await Friday’s employment report, investors remain focused on trade developments and the Federal Reserve’s next move. Any signs of acceleration—or further deterioration—in the labor market could shift expectations rapidly.
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
