Equities Surge, Dollar Slumps as Trump Delays China Tariffs
Highlights:
* US equity futures and the dollar witnessed significant movement on Monday due to eased concerns over immediate China-specific tariffs.
* Trump signed executive orders, but none included new tariffs on the US's top three trading partners.
* S&P 500 futures gained 0.3%, while the dollar index dropped 1.1%.
* Trump plans to study trade policies with China, Canada, and Mexico before making any hasty decisions.
* Trump's comments on invoking emergency powers at the southern border impacted the Mexican peso.
* Asian stocks climbed on the news of Trump's "very good" conversation with Chinese leader Xi Jinping.
* Bitcoin reached a record high, potentially influenced by the presidential memecoins.
* Inflationary domestic policies may bolster the dollar and Treasury yields.
Key Market Movements:
Stocks:
* S&P 500 futures: +0.3%
* Dow Jones Industrial Average futures: +0.3%
* MSCI World Index: +0.2%
Currencies:
* Bloomberg Dollar Spot Index: -0.8%
* Euro: +1% to $1.0376
* British pound: +0.8% to $1.2272
* Japanese yen: +0.3% to 155.87 per dollar
Cryptocurrencies:
* Bitcoin: +0.8% to $104,363.01
* Ether: +2.8% to $3,321.34
Bonds:
* 10-year Treasury yield: Unchanged at 4.63%
* Germany's 10-year yield: Unchanged at 2.53%
* Britain's 10-year yield: Unchanged at 4.66%
Commodities:
* West Texas Intermediate crude: -1.7% to $76.58 a barrel
* Spot gold: +0.1% to $2,706.83 an ounce