Markets Show Cautious Optimism Ahead of US-China Talks and Inflation Report
Equity markets remain cautiously optimistic, awaiting further (positive) news from the US/China negotiations and the May US inflation data. Gold is taking a pause, as are yields on US government bonds.
Our macro dashboards show little change, with the situation essentially frozen as markets wait to understand developments on the tariff negotiations front. The US macroeconomic situation remains broadly solid, and the S&P 500 is approaching the early 2025 highs. The upward trend in bonds is still holding, but it has significantly weakened, with a sideways movement now prevailing in the short term.
On the macroeconomic front, the day will be marked by the release of US inflation data for May.
Our forecasting analyses still indicate a positive day for equities, particularly in the US, while a more cautious stance prevails for Europe. In fixed income, markets are in a wait-and-see mode regarding US Treasury yields, while corporate bonds continue to show positive signals. Volatility is expected to remain stable.
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NOTES AND WARNINGS
Data compiled by kbmeter.com. Analysis date: 11 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.
