#TrumpTariffs The American 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 America was released for May, which showed a slowdown in monthly inflation and an acceleration on a yearly basis.
⬅️ How did global markets react to these developments?
▪️ Gold futures maintain their gains and trade up by about 1% at levels of $3379.9 per ounce, awaiting confirmation from the Chinese side.
▪️ Oil prices maintain their gains at the highest level in nearly two months, amid optimism that the agreement will help stimulate global economic activity and demand for crude oil.
▪️ Brent crude futures rise by about 1.4% to $67.82 per barrel, and U.S. crude futures climb 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 rising by more than 100 points, and S&P 500 futures up by about 0.4%.
▪️ The yield on U.S. Treasury bonds slightly declines to 4.45%.