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Wednesday Afternoon Coffee - Markets Update - 04 June 2025 - Markets Steady as Tariff Tensions Persist; Gold Gains Ahead of Jobs Data
- The Trade Academy Team
- Jun 4
- 3 min read
Markets Update: U.S. stocks edged higher on Wednesday, while Treasury yields fell and gold prices advanced as investors parsed ongoing trade negotiations and awaited Friday’s pivotal U.S. employment report.
Global Markets Roundup: 3 June 2025
Stocks Tick Up as Rate Relief Offsets Trade Uncertainty
Wall Street posted modest gains alongside a global equity rally, buoyed by easing bond yields and optimism around U.S.-Europe trade talks, despite continued tariff tensions and weak U.S. economic data.
Dow Jones Industrial Average: +18.57 points (+0.04%) to 42,537.23
S&P 500: +12.69 points (+0.21%) to 5,982.97
Nasdaq Composite: +84.52 points (+0.44%) to 19,483.48
The U.S.-Europe tariff standoff continues—with a doubling of U.S. metals duties taking effect Wednesday—European negotiators reported progress. Meanwhile, trade anxieties deepened as China’s critical mineral export curbs rattled automakers, intensifying global supply chain risks.
President Donald Trump signaled challenges ahead in a potential meeting with China’s President Xi Jinping, describing Xi as “tough” and “extremely hard to make a deal with,” dimming hopes for swift resolution.
Soft Jobs, Services Data Raise Growth Questions
Economic signals turned cloudy. Private payrolls processor ADP reported just 37,000 new private sector jobs in May—falling 69.2% short of expectations ahead of Friday’s official jobs data. In addition, the U.S. services sector slipped into contraction, with prices paid climbing to their highest level since November 2022.
Treasury Yields Fall Sharply
Bond markets responded to the soft data and tariff uncertainties with a notable rally, pushing long-end yields lower:
10-Year Yield: -9.5 bps to 4.365%
30-Year Yield: -9.5 bps to 4.8877%
2-Year Yield: -8.2 bps to 3.875%
Europe Leads Global Equity Advance
European stocks rallied on the heels of Germany’s approval of a corporate tax relief package. Despite stagnant euro zone business activity and Germany’s sharpest services contraction in over two years, Germany’s benchmark index hit a record high.
MSCI World Index: +4.25 points (+0.48%) to 890.15
STOXX 600: +0.47%
FTSEurofirst 300: +9.84 points (+0.45%)
Emerging Markets (MSCIEF): +14.85 points (+1.28%) to 1,172.98
Asia-Pacific ex-Japan (MIAPJ0000PUS): +1.33% to 618.30
Japan Nikkei: +300.64 points (+0.80%) to 37,747.45
Dollar Slips on Data Disappointment
The dollar weakened across the board as soft labor and services data clouded the economic outlook.
Gold Rises, Oil Slides on Supply Data
Gold prices climbed as the weaker dollar and risk aversion supported demand for safe-haven assets.
Spot Gold: +0.7% to $3,375.59/oz
U.S. Gold Futures: +0.64% to $3,371.50/oz
Crude prices reversed earlier gains after U.S. inventory data showed larger-than-expected stockpiles, reinforcing supply concerns amid rising OPEC+ output and trade-related demand risks.
WTI Crude: -0.88% to $62.85/barrel
Brent Crude: -1.17% to $64.86/barrel
Outlook
Markets are treading cautiously as investors await Friday’s jobs data and monitor tariff negotiations. Any signs of escalating rhetoric or weakening macro data could test recent gains.
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
