📆 Monday, May 5
► European markets traded cautiously with UK markets closed for a holiday. The Stoxx 600 is trading flat after a nine-day winning streak. Investors weighed the lack of progress in US-China trade talks and a major policy shift in oil markets. Energy shares underperformed after Saudi Arabia warned that continued overproduction could trigger further OPEC+ supply hikes. Corporate headlines included Shell evaluating a potential acquisition of BP, awaiting further declines in BP’s stock and oil prices before considering a bid.
► US equity futures fell as investors grew concerned over stalled US-China trade negotiations. S&P 500 futures retreated over 0.7% (Nasdaq 100 down 0.9%), threatening to end the index’s longest winning streak in two decades. President Trump said no talks with China’s leadership were scheduled this week, although deals with other nations could materialize soon. While first-quarter earnings season is drawing to a close, the focus has shifted to the upcoming Fed decision, where rates are expected to remain on hold despite tariff-induced growth concerns. Goldman Sachs reaffirmed expectations for rate cuts later this year. Warren Buffett also made headlines, announcing he would step down from Berkshire Hathaway by year-end after six decades at the helm.
► Asian markets were mixed, as Japan and China markets were closed for holidays. On the currency front, the offshore CNY climbed to a six-month high as the USD softened after gains in the previous week. In addition to this, the JPY strengthened toward 144/USD. Australia’s ASX 200 slipped 0.91%, with mining stocks lagging. Investors monitored signs of progress in US-China trade talks while cautious over global growth signals.
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