Table of Contents Show
Europe's Mid-Session Bell: Risk assets rise following US-China talks, Gold slides, DAX fresh highs
US stock futures climbed, and the dollar gained after China and the US made strong progress in trade talks, fueling hope that tensions will ease.
A regional stock index rose 0.7%, with the Hang Seng Index up for the eighth straight day, marking its best streak in a year. S&P 500 futures increased 1.5%, Nasdaq 100 jumped 2%, and European futures rose 0.8%.
/*
Requesting advertisement by calling an endpoint assures that
the advertisement is never cached together with the page.
xKQGC – is a forced measure to prevent JS function from
being overwritten.
*/
function load_advertisement_xKQGC(){
let adSlot = document.getElementById(‘ad-slot-container-xKQGC’);
fetch(‘/load-advertisement/26/?is_sidebar=False’)
.then(response => response.text())
.then(html => {
adSlot.outerHTML = html;
})
.catch(error => {
console.error(‘Error fetching the template:’, error);
});
}
load_advertisement_xKQGC();
Global bonds fell as Treasury yields rose and European debt futures dropped. Stocks in India climbed 3%, while those in Pakistan surged 9% after the two nations agreed to a ceasefire.
On the FX front, safe havens are struggling this morning as optimism over a trade deal. The dollar rose 0.4% to 145.93 yen and 0.5% to 0.8337 Swiss francs.
The dollar index stayed steady near a one-month high but remained 3.6% lower since the April 2 announcement of Trump’s “Liberation Day” tariffs.
The New Zealand dollar rose 0.3% to 0.5927, and the Australian dollar also gained 0.3% to 0.6432. Meanwhile, the euro dropped 0.2% to 1.1228, and the British pound fell 0.3% to 1.3288.
Currency Strength Chart:
{
const imageElement = document.getElementById(‘pinch-to-zoom-img-2115’);
if (imageElement) {
panzoom(imageElement, {
maxZoom: 4.0,
minZoom: 0.5,
contain: ‘outside’,
});
}
}, 100);
}
}
}”
x-init=”$watch(‘imgModal’, value => initPanzoom())”
class=”flex justify-center “>
close
Source: OANDA Labs Blog
US-China trade talks
China’s Vice Premier He Lifeng called the weekend talks with US officials “an important first step” toward improving trade relations.
Though no specific actions were announced on Sunday, Lifeng said both sides agreed to set up a system for future discussions, to be led by US Treasury Secretary Scott Bessent and himself. Bessent promised more details and a joint statement on Monday.
Lifeng stressed that China-U.S. trade is about mutual benefits, rejecting the idea that one side must lose for the other to win. He said China is ready to work with the US to handle differences, strengthen collaboration, and “expand shared opportunities.”
Markets are likely to take cues from developments around the US-China talks and any announcements that are forthcoming. US Treasury Secretary Bessent to brief on China talks at 3AM EST, according to US Officials.
Economic data releases
From a data standpoint, it is a quiet start to the week. The biggest highlights will come from the Bank of England Bank Watchers conference 2025 at King’s Business School.
We will hear from BoE policymakers Lombardelli and Green who are both speaking at the event.
{
const imageElement = document.getElementById(‘pinch-to-zoom-img-5679’);
if (imageElement) {
panzoom(imageElement, {
maxZoom: 4.0,
minZoom: 0.5,
contain: ‘outside’,
});
}
}, 100);
}
}
}”
x-init=”$watch(‘imgModal’, value => initPanzoom())”
class=”flex justify-center “>
close
For all market-moving economic releases and events, see the MarketPulse Economic Calendar. (click to enlarge)
/*
Requesting advertisement by calling an endpoint assures that
the advertisement is never cached together with the page.
7m3KZ – is a forced measure to prevent JS function from
being overwritten.
*/
function load_advertisement_7m3KZ(){
let adSlot = document.getElementById(‘ad-slot-container-7m3KZ’);
fetch(‘/load-advertisement/30/?is_sidebar=False’)
.then(response => response.text())
.then(html => {
adSlot.outerHTML = html;
})
.catch(error => {
console.error(‘Error fetching the template:’, error);
});
}
load_advertisement_7m3KZ();
Chart of the day – DAX
From a technical standpoint, the DAX has gapped up over the weekend and pushed to within a whisker of the 24000 handle.
The DAX index has now printed all-time highs but with a lack of historical price action, technical analysis remains somewhat of a challenge.
I will be paying attention to psychological level and round numbers which tend to illicit a response.
Resistance ahead may be found at 24250 and 24500.
Immediate support rests at 23471 and 23212 respectively.
DAX Daily Chart, May 12, 2025
{
const imageElement = document.getElementById(‘pinch-to-zoom-img-8581’);
if (imageElement) {
panzoom(imageElement, {
maxZoom: 4.0,
minZoom: 0.5,
contain: ‘outside’,
});
}
}, 100);
}
}
}”
x-init=”$watch(‘imgModal’, value => initPanzoom())”
class=”flex justify-center “>
close
Source: TradingView.com (click to enlarge)
Follow Zain on Twitter/X for Additional Market News and Insights @zvawda
Opinions are the authors’; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors.
If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please refer to the MarketPulse Terms of Use.
Visit https://www.marketpulse.com/ to find out more about the beat of the global markets.
© {CURRENT_YEAR} OANDA Business Information & Services Inc.
