The easing of the US-Europe trade war has led to a rebound in European stocks, the euro reaching a new high this month, gold retreating, and Bitcoin briefly surpassing the 110,000 mark

Wallstreetcn
2025.05.26 23:44
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U.S. stock markets are closed, and U.S. stock index futures rose over 1%; the pan-European stock index ended a three-day decline, closing up 1%, with the automotive sector rising nearly 2%, and Stellantis up 5%. The U.S. dollar index hit a nearly six-week low; the British pound reached a three-year high; the New Taiwan dollar hit a two-year high; Bitcoin briefly rose over $3,000. Gold fell from a two-week high, with futures dropping over 1% at one point

The US-EU tariff war has been temporarily paused, leading to a rebound in European stocks, with the tariff-sensitive automotive sector leading the gains. The euro strengthened, reaching a new high for the month, while the dollar dipped to a more than one-month low. The high-risk cryptocurrency Bitcoin briefly surpassed the $110,000 mark. As risk aversion eased, gold retreated.

Due to the US Memorial Day, trading volume in the financial markets was lower than usual, and US stocks were closed on Monday:

  • Pre-market European stocks: According to Xinhua News Agency, on May 25 local time, US President Trump stated that after a phone call with European Commission President Ursula von der Leyen, he agreed to postpone the start date for imposing a 50% tariff on the EU from June 1 to July 9. European stocks opened higher, with the German DAX index rising over 1.7%, the French CAC40 index up about 1.3%, and the Euro Stoxx 50 index increasing over 1.6%.
  • Intra-day European stocks: US stock index futures rose more than 1%. The automotive and parts index, sensitive to tariff-related pressures, led the market, with the automotive sector rising nearly 2% and Stellantis up 5%. However, Porsche's stock price fell 3.3%, limiting the index's gains. Luxury stocks, which are significantly affected by the US market, also rose. The stock prices of Kering, LVMH, and Richemont increased by about 1% respectively.
  • Supported by the weakening dollar, easing tariff situation, and foreign investors turning to Asia-Pacific assets, the dollar index hit a nearly six-week low, the pound continued its upward trend from last Friday, reaching a three-year high, and the New Taiwan dollar hit a two-year high. Gold and Bitcoin continue to show a "see-saw" pattern, with Bitcoin briefly rising over $3,000, while gold fell from a two-week high, with futures gold dropping over 1%.

On Monday, European stock markets opened higher, recovering losses from the previous trading day, with the pan-European Stoxx 600 index closing up 1%. US President Trump postponed the threat of imposing a 50% tariff on the EU, providing relief to the market. The German stock index rose nearly 1.7%, and the Danish stock index increased over 2.4%.

Pan-European stocks:

  • The European STOXX 600 index closed up 0.99% at 550.50 points, after gapping higher and continuing to oscillate at high levels.

  • The Eurozone STOXX 50 index closed up 1.30% at 5395.33 points, after gapping higher and continuing to oscillate at high levels.

National stock indices:

  • The German DAX 30 index closed up 1.68% at 24027.65 points.

  • The French CAC 40 index closed up 1.21% at 7828.13 points.

  • The Italian FTSE MIB index closed up 1.30% at 39988.48 points, and the FTSE Italy All-Share Banks index closed up 1.18%

  • The UK stock market is closed.

Sectors and Stocks:

  • Among the blue-chip stocks in the Eurozone, Stellantis rose by 5.01%, and Siemens rose by 2.99%.

  • Among all constituents of the European STOXX 600 index, Zealand Pharma rose by 10%, Thyssenkrupp rose by 8.76%, Frontline rose by 6.64%, and Embraer Group rose by 6.27%, ranking fourth.

The Canadian stock index reached a record closing high, and Canadian bond yields fell across the board. The two-year German bond yield rose by about 2 basis points, while the 30-year German bond yield fell by more than 2 basis points.

Canadian Government Bonds:

  • In North America, at the end of trading, the yield on the Canadian 10-year benchmark government bond fell by 2.5 basis points, the two-year Canadian bond yield fell by 0.50 basis points, and the five-year Canadian bond yield fell by 2.3 basis points.

European Bonds:

  • At the end of trading in Europe, the yield on the German 10-year government bond fell by 0.7 basis points to 2.560%, after U.S. President Trump extended the deadline for tariffs on the EU, resulting in a "gap up."

  • The two-year German bond yield rose by 1.8 basis points to 1.782%, remaining in an upward trend throughout the day, trading within the range of 1.811%-1.780%; the 30-year German bond yield fell by 2.3 basis points to 3.065%.

  • The UK bond market is closed.

The euro strengthened, reaching a new high for the month. The Bloomberg Dollar Index hit a new low since December 2023, approaching 1200 points. The New Taiwan Dollar broke through the 30 mark against the U.S. dollar during trading, reaching a new high since May 5. The New Zealand dollar rose to its highest level against the U.S. dollar since November last year.

U.S. Dollar:

  • At the end of trading in New York, the ICE Dollar Index fell by 0.11% to 99.006 points, remaining in a downward trend throughout the day.

  • The Bloomberg Dollar Index fell by 0.05% to 1210.71 points, with an intraday trading range of 1211.51-1207.08 points, showing a V-shaped trend during the Asian and European sessions.

Non-U.S. Currencies:

  • The euro rose by 0.19% against the U.S. dollar, the British pound rose by 0.16% against the U.S. dollar, and the U.S. dollar fell by 0.05% against the Swiss franc.

  • Among commodity currencies, the Australian dollar fell by 0.13% against the U.S. dollar, the New Zealand dollar rose by 0.26% against the U.S. dollar, and the U.S. dollar rose by 0.04% against the Canadian dollar.

Japanese Yen:

  • At the end of trading in New York, the U.S. dollar rose by 0.16% against the Japanese yen, trading at 142.79 yen, with an intraday trading range of 142.23-143.08 yen

  • The euro rose 0.35% against the yen, and the pound rose 0.32% against the yen.

Offshore Renminbi:

  • At the New York close, the offshore renminbi was quoted at 7.1768 against the US dollar, down 42 points from last Friday's New York close, trading within the range of 7.1616-7.1830 during the day.

Cryptocurrency:

  • At the New York close, the CME Bitcoin futures BTC main contract rose 0.74% from last Friday's New York close, quoted at $110,000.

  • The CME Ether futures DCR main contract rose 0.79%, quoted at $2,566.50.

Spot gold fell, at one point dropping over 1% during the day, then rebounding; international oil prices rose about 1% earlier before closing flat.

Crude Oil:

  • At the New York close, WTI crude oil futures prices ultimately closed flat, quoted at $61.53 per barrel at 02:29 Beijing time, with no closing data due to the US financial market being closed.

  • Brent July crude oil futures fell $0.04, a decrease of 0.06%, quoted at $64.74 per barrel.

Gold:

  • At the New York close, spot gold fell 0.41%, quoted at $3,343.84 per ounce, remaining in a downward trend throughout the day, refreshing the daily low to $3,323.83 at 17:26 Beijing time.

  • COMEX gold futures fell 0.70%, quoted at $3,342.20 per ounce.

Silver:

  • At the New York close, COMEX silver futures rose 0.01%, quoted at $33.645 per ounce.

Copper:

  • At the New York close, COMEX copper futures fell 0.34%, quoted at $4.8470 per pound
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