Gold and S&P 500 Futures Rise as Tariff Conflict Abates – Asia Market Wrap

US equity-index futures rose after Trump indicated an openness to a deal with China, boosting morale after markets were unnerved by a rapid escalation in trade tensions.

Contracts for the S&P 500 increased 1.2%, while those for the Nasdaq 100 surged 1.6%, after the government dialled back its rhetoric after Trump threatened 100% tariffs on China in reaction to Chinese export restraints. The 10-year US Treasury futures contract opened higher, as oil gained 1.4%. Silver swung close to a record as a major short squeeze in London and trade worries roiled the market, while gold reached a new high. Cryptocurrencies stabilised, and contracts projected a better opening for European stocks.

Declines in Asian stocks, which were closed when Trump spoke on Friday, raise doubts about the truce’s long-term viability. Mainland Chinese markets slumped 1.8%, while Hong Kong experienced its largest intraday drop since early April. Japan is closed for the holiday, with no cash trade in Treasuries.

Meanwhile, Chinese exports increased at the quickest rate in six months, far above expectations, demonstrating resilience and providing Beijing a stronger hand in the latest trade conflict with the US.

In European news, Macron named a new cabinet on Sunday, as pressure mounts on him and his reappointed PM, Lecornu, to resolve France’s escalating political crisis and enact a budget. French bond futures opened lower.