Financial Markets on Edge: Trump Issues New ‘Threat’ After US-China Deal
Barely enough time to digest the announcement of a preliminary agreement with China, and Trump surprises the markets by hinting at the possibility of a sort of ‘ultimatum’ on tariffs for all trade partners with whom an agreement has not yet been reached. However, the underlying outlook remains positive for equity markets, especially U.S. ones.
Despite the statements coming from the White House—which continue to heavily influence investor sentiment—the fundamental situation in the financial markets does not appear to be changing. Our intermarket dashboards confirm a generally risk-on environment, with the S&P 500 to VIX ratio reaching its highest level since last March.
On the macroeconomic front, today brings data on the performance of the UK economy in the quarter ending in April, the U.S. Producer Price Index, and an update on U.S. unemployment claims.
Our forecast analyses continue to indicate a broadly positive backdrop for equity markets, with a stronger conviction in the U.S. A wait-and-see approach prevails regarding gold, the dollar, and U.S. Treasury yields. Volatility remains subdued.
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NOTES AND WARNINGS
Data compiled by kbmeter.com. Analysis date: 12 June 2025 - 7:21 AM GMT+1
This content is provided for informational purposes only and should not be considered financial advice. All scores and assessments are based on the previous trading day’s closing prices. Futures indications refer to the date and time of the analysis.
