Global markets saw a third straight day of gains, buoyed by cautious optimism that ongoing US-China trade talks could yield meaningful progress. Major US indices extended their upward streak, while European markets edged slightly higher as investors kept a close eye on developments in London, where officials from both countries continued negotiations.
The Dow Jones Industrial Average added 105 points to close at 42,866.87, while the S&P 500 rose 0.55% to 6,038.81. The Nasdaq Composite gained 0.63%, ending at 19,714.99. In Europe, the Stoxx 600 finished marginally higher, up 0.08%, as traders awaited updates from the transatlantic talks.
Hopes rise for trade resolution
US Commerce Secretary Howard Lutnick told reporters in London the talks were “going really, really well,” adding that negotiators were working intensively, and the meetings could stretch into Wednesday if needed. Markets are hopeful that the discussions will avert the reimposition of steep tariffs, after both sides agreed last month to temporarily ease their duties—a move seen as a breakthrough.
Autos and energy stocks outperformed in Europe, each sector rising around 1.8%, fuelled by speculation that a deal could reopen export pathways and reduce pressure on supply chains.
Tech and earnings drive momentum
In the US, strong earnings reports and renewed enthusiasm around artificial intelligence continued to lift tech stocks, which have been central to the market’s rebound this month. Analysts pointed to improving technical signals, with the S&P 500 surpassing key levels.
Inflation concerns linger
All eyes now turn to the US CPI report, due late Wednesday, which could clarify how tariffs and trade tensions are filtering into prices.
Commodities and the dollar
Brent crude is trading 0.57% lower at US$66.66 a barrel.
WTI crude is trading 0.47% lower at US$64.98 a barrel.
Spot gold is trading 0.01% lower at US$3,323.40 an ounce.
Gold futures (COMEX) are trading 0.34% lower at US$3,343.40 an ounce.
One Australian dollar is buying 65.23 US cents.
Futures
The SPI futures are pointing to a 23 point rise.
