Tuesday Afternoon Coffee - Markets Update - 03 Jun 2025 - Markets Climb as Tariff Talks Continue; Dollar Recovers, Gold Retreats

The Trade Academy Team
Jun 3
3 min read

Markets Update: Wall Street closed higher Tuesday, bolstered by optimism over U.S.-China tariff negotiations and a rebound in the dollar, as investors braced for pivotal labor data due later this week. European and emerging markets also posted modest gains despite warnings of a deeper global slowdown.

Global Markets Roundup: 3 Jun 2025

Stocks Rise Amid Trade Hopes, Economic Jitters

All three major U.S. indexes advanced, led by gains in semiconductors that pushed the Nasdaq to the forefront. Investors reacted positively to reports that President Donald Trump is set to meet Chinese President Xi Jinping this week to address escalating trade tensions.

Dow Jones Industrial Average: +214.16 points (+0.51%) to 42,519.64
S&P 500: +34.43 points (+0.58%) to 5,970.37
Nasdaq Composite: +156.34 points (+0.81%) to 19,398.96

Despite ongoing uncertainty, the number of U.S. job openings unexpectedly rose in April, even as factory orders dropped more than expected—signaling mixed momentum in the economy.

OECD Cuts Global Growth Forecast

The Organization for Economic Cooperation and Development (OECD) downgraded its 2025 global growth outlook, citing trade wars as a principal drag. The group warned of rising protectionism, inflationary pressures, and supply chain disruptions. Similarly, the UN’s International Labor Organization (ILO) slashed its global employment forecast amid worsening trade tensions.

Carlson suggested weaker global projections may ironically support U.S. markets, as capital shifts to perceived safer assets.

Dollar Rebounds as Yields Steady

The dollar index DXY bounced back 0.71% to 99.28, recovering from a six-week low. The euro EURUSD dropped 0.62% to $1.137, while the dollar rose 0.93% against the yen (USDJPY) to 144.02.

U.S. Treasury yields were little changed after slipping earlier in the session.

10-year yield: 4.452%, down 1 basis point
30-year yield: 4.9769%, down 1.8 basis points
2-year yield: 3.953%, up 0.8 basis points

Gold Retreats, Oil Rises on Geopolitical Risk

Gold prices retreated as the dollar firmed, with spot prices falling 0.78% to $3,352.87/oz and U.S. futures slipping 0.59% to $3,350.60/oz.

Crude oil extended gains, driven by geopolitical tensions from the war in Ukraine and strained negotiations over Iran’s nuclear program.

WTI Crude (CL1!): +1.42% to $63.41/barrel
Brent Crude (BRN1!): +1.55% to $65.63/barrel

Global Markets Mixed

In Europe, stocks edged higher following a report that euro zone inflation has eased to the ECB’s target, potentially paving the way for more accommodative policy.

DAX (Frankfurt): +161 points (+0.67%)

Top gainers: Airbus (+2.37%), Siemens Energy (+2.02%), BMW (+1.86%)
Laggards: Zalando (-3.50%), Deutsche Boerse (-1.51%), HeidelbergCement (-1.40%)

STOXX 600: +0.09%
FTSEurofirst 300: +0.17%
MSCI All-World Index: +0.30% to 885.52
Emerging Markets Index: +0.32% to 1,157.44
Asia-Pacific ex-Japan: +0.37% to 609.73
Japan’s Nikkei: -0.06% to 37,446.81

Commodities and Agriculture

Cotton futures remained flat, trading between 65–66 cents/lb amid weak demand and rising supply.

CBOT grains were mixed:

Corn: unchanged
Soybeans: +0.7%
Wheat: -0.6%

Wheat markets remain fragmented globally, with countries like Turkey and China increasing imports from Russia. Egypt remains Africa’s largest wheat buyer, while Sub-Saharan Africa’s rapid population growth and biofuel policy shifts are reshaping global demand.

Outlook

As Trump and Xi prepare to meet, investors are closely watching for signs of resolution in trade talks. Friday’s U.S. jobs report looms large, with consensus estimates predicting 130,000 new jobs and unemployment holding steady at 4.2%.

With growth forecasts dimming and policy uncertainty high, markets remain vulnerable to both economic data surprises and geopolitical shifts.

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