European markets are experiencing fluctuations today as negotiations between the US and China on trade duties remain in limbo. Secretary of State Howard Lutnick reported that the dialogue is “proceeding well,” while talks in London have been suspended and will resume in the evening. Meanwhile, Wall Street closed upwards, with the S&P 500, Nasdaq, and Dow Jones reaching new highs.
US-China Trade Talks: Key Updates
According to the Wall Street Journal, President Donald Trump has authorized Treasury Secretary Scott Beesent to negotiate the elimination of recent restrictions on the sale of a variety of technologies and other Chinese products. There is optimism in the tech sector, as rumors suggest Trump is considering revoking export restrictions on chips to Beijing. This news has positively impacted European markets, with the CAC 40 of Paris and the FTSE MIB of Milan showing gains.
Banking Sector in Focus
In Milan, attention is high on the banking front, especially with the upcoming assembly of Mediobanca on June 16 to launch the OPS on Banca Generali. Rumors suggest a record participation of around 80% of the capital. Additionally, JP Morgan has increased its stake in Banca Popolare to nearly 10%, while Unicredit faces challenges from the German government defending Commerzbank.
Automotive and Energy Sectors
Stellantis and other automotive companies are benefiting from hopes of positive news on trade duties. Oil prices have risen, with Eni, Tenaris, and Saipem seeing gains of over 2% and 3%, respectively. However, Leonardo (Finmeccanica) has slipped due to uncertainties regarding defense expenses.
Geopolitical and Macroeconomic Insights
NATO Secretary Mark Rutte emphasized the need to increase air defense capabilities by 400% to counter the Russian threat. Investors are focused on upcoming inflation data for May, which could provide new signals from the Fed regarding potential rate cuts. Market analysts predict a rate cut in July.
Currency and Commodities
The euro remains stable at $1.142, while oil prices have risen, with Brent at $67.7 per barrel and WTI at $66 per barrel. Bitcoin is falling, just above $10,800, and gold is stable at around $3,327 per ounce.
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