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Oil rises, Asian stocks under pressure following Trump-Xi talks

Oil prices moved higher on Friday after US President Donald Trump said China had agreed to buy US crude following talks with Chinese President Xi Jinping, while Asian stock markets came under pressure as a US trade official said chip export controls had not been discussed in detail at Thursday’s US-China talks. South Korea’s KOSPI led regional losses, slumping more than 6%, while Japan’s Nikkei 225 and Hong Kong’s Hang Seng also fell sharply as semiconductor shares retreated. Gold and silver were sharply lower, while the US dollar and Treasury yields moved higher.

  • Data
  • Autore Shane Strowmatt, Senior Investment Writer
  • Tempo di lettura 5 minuto

Trump

Oil prices moved higher on Friday after Trump said China had agreed to buy US crude following talks with Xi, although Beijing had not confirmed the purchases. Brent crude for July rose 1.3% to more than USD 107 a barrel, while West Texas Intermediate for June gained 1.5% to nearly USD 103 per barrel. Beyond oil, Chinese and US officials said on Thursday that the two sides had agreed to pursue more cooperative relations under a framework of "strategic stability" for the next three years and beyond. Gold was trading around USD 4570 per ounce on Friday, down nearly 2%, while silver slipped more than 6% to USD 78 per ounce. The US Dollar Index was stronger, up 0.2%, while US Treasury yields rose across the curve, with the 2-year yield trading around 4.1% and the 10-year yield at 4.5%.

Asian stocks fall as chip hopes fade

Most Asian stock markets declined on Friday as concerns over US chip export policy weighed on semiconductor shares. South Korea’s KOSPI led losses, dropping 6.3%, while Japan’s Nikkei 225 fell 2.1% and Hong Kong’s Hang Seng lost 1.6%, after a US trade official said chip export controls had not been discussed in detail at Thursday’s US-China talks. Mainland China’s CSI 300 fell 0.8%, while India’s Nifty 50 was bucking the trend with a 0.4% gain. Australia’s S&P/ASX 200 was down 0.3%.

US stocks rise on AI optimism

US stocks advanced on Thursday as renewed enthusiasm around artificial intelligence lifted technology shares, with the Nasdaq 100 rising 0.7% to 29,580.30 points, the S&P 500 gaining 0.8% to 7501.24 and the Dow Jones Industrial Average climbing 0.8% to 50,063.46, close to its February record. Network equipment maker Cisco jumped 13.4% after reporting stronger-than-expected third-quarter results and raising its outlook for 2025/26, helped by expectations of stronger demand from major cloud computing providers. AI-related stocks also moved higher, with Nvidia up 4.4%, while chipmaker Cerebras Systems surged in its market debut after pricing its initial public offering above the indicated range.

US producer prices surge

US producer prices climbed 1.4% in April from March, accelerating from a revised 0.7% increase and sharply exceeding forecasts, according to data released Wednesday. Annual producer inflation rose to 6% from 4.3%, while core prices excluding food and energy increased 1% month-on-month and 5.2% from a year earlier. The figures followed hotter-than-anticipated US consumer inflation data released on Monday, which showed prices up 3.8% year-on-year, driven largely by higher energy costs. The renewed inflation pressure could complicate the Federal Reserve’s policy path before its next meeting in June, with traders increasingly pricing in the possibility of a rate hike by year-end.

European stocks gain on US-China talks

European equities rose on Thursday as investors were encouraged by talks between the US and China and by continued strength in US technology shares linked to artificial intelligence. The Euro Stoxx 50 gained 1.1%. In macroeconomic data, Eurostat said on Wednesday that euro-area gross domestic product rose 0.1% in the first quarter, slowing from 0.2% in the fourth quarter, while annual growth eased to 0.8% from 1.3%. Employment in the euro area also increased by 0.1% in the first quarter, down from 0.2% in the previous quarter, with annual employment growth slowing to 0.5% from 0.7%. Across the wider EU, GDP rose 0.2% quarter on quarter and 1% year on year, while employment increased 0.1% from the previous quarter and 0.6% from a year earlier.

UK growth accelerates in first quarter

The UK economy expanded by 0.6% in the first quarter, up from 0.2% in the fourth quarter, according to preliminary data released on Thursday, with growth driven mainly by broad-based gains in services. Production edged higher and construction returned to growth, partly reversing weakness late last year. The figures reflect stronger momentum at the start of the year, but the Iran war is likely to weigh on activity ahead through higher energy costs, weaker business confidence and falling job vacancies. The data offer some support to Prime Minister Keir Starmer’s government as political pressure intensifies following Labour’s poor local election results last week.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Mitsubishi UFJ Financial Group and Mizuho Financial.

Economic data in focus: Italian Consumer Price Index (10:00), Empire State Manufacturing Survey (14:30), US manufacturing production (15:15).

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Editor: Alessandro Fezzi
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