Pound Rises on Trade Deal as Stock Futures Rally – Asia Market Wrap

Stock-index futures and Asian shares surged Thursday as Trump announced plans to present a ‘major’ trade deal, increasing hope that the US was making progress in negotiations. The Pound extended its advances.

Contracts for the S&P 500 and European equities surged 0.8% after Trump announced the agreement in a Truth Social tweet without revealing the country’s name. According to those acquainted with the situation, the administration plans to announce a deal with the UK. Asian shares recovered from losses of up to 0.5% to rise 0.3%. Bitcoin gained 2.7% to $99,355, its highest level in three months. Treasuries declined, while gold climbed.

Since the early weeks of April, market turmoil has subsided dramatically, thanks in part to Trump’s trade concessions, but also to a spate of US economic reports that boosted bullish sentiment. The US president imposed duties on Chinese goods, prompting retaliation from the Asian country. This weekend’s discussions in Switzerland will be a primary emphasis.

Earlier, the president stated that he was unwilling to decrease tariffs on China in order to open up more substantial trade conversations with Beijing. Stocks rose Wednesday after China and the US announced intentions to have trade talks in Switzerland this weekend.