U.S. President Donald Trump announces that his country has reached a trade agreement with China, indicating that America will receive a total tariff of 55% while China will receive 10%.
Shortly after Trump's announcement, inflation data for the U.S. for May was released, showing a slowdown in monthly inflation and an acceleration on an annual basis.
So how did global markets react to these developments?
▪️Gold futures maintain their gains and trade up by about 1%, recording levels of $3379.9 per ounce, awaiting confirmation from the Chinese side.
▪️Oil prices maintain their gains at the highest level in about two months, amid optimism that the agreement will help stimulate global economic activity and demand for crude.
▪️Brent crude futures rise by about 1.4% to $67.82 per barrel, and U.S. crude futures increase by 1.7% to $66.09 per barrel.
▪️U.S. index futures are up, amid optimism for improved confidence with the two largest economies in the world reaching a trade agreement, with Dow Jones futures up more than 100 points, and S&P 500 futures up about 0.4%.
▪️The yield on U.S. Treasury bonds slightly declines to 4.45%.
