Daily summary: Rebound on Wall Street stalls at the end of the week. Gold gains 1% on weaker US dollar

Wall Street indices retreat ahead of the official start of trade negotiations between China and the U.S. (S&P 500: -0.25%, DJIA: -0.4%, Nasdaq: -0.2%, Russell 2000: -0.5%). Despite the declines in the U.S., the VIX index falls nearly 2%.

Sentiment deteriorated after Donald Trump commented that “80% tariffs on China sound reasonable.” Media reported that the U.S. administration, led by Treasury Secretary Bessent, is planning to lower tariffs below 60%.

Investors are skeptical that a quick trade deal will be reached. White House spokesperson Leavitt also stated that the mentioned 80% tariffs are neither a binding nor an official proposal for tariff reduction by the U.S.

Fed members signalled economic uncertainty but no pressure for cutting rates, as hard US data signals solid economy, despite falling consumers sentiments.

An improved trade outlook supports Tesla shares (TSLA: +4.5%). China is the company’s second most important market and a key hub in its supply chain.

In Europe, indices finish the week with broad optimism (DAX: +0.63%, CAC 40: +0.64%, FTSE 100: +0.27%).

Bavarian Nordic shares gain 6.2% (the most in the Stoxx 600 index) after solid Q1 2025 results. Despite uncertainty regarding tariffs on the European pharmaceutical sector, the company maintained its 2025 forecast (DKK 5.7–6.7 billion in revenue, 26%–30% EBITDA margin). The result was driven mainly by sales in the Travel Health segment.

In the U.S. stock market, in addition to Tesla, Pinterest (PINS.US) also gains after exceeding revenue forecasts and surprising investors with raised guidance.

Canada’s employment change for April came in slightly above expectations, but the unemployment rate rose to 6.9% versus 6.8% expected and 6.7% in March. Wages increased 5.5% y/y, compared to 5.3% expected, remaining unchanged from last month’s pace.

In the forex market: the dollar gives up most of yesterday’s gains (USDIDX: -0.33%), weakening against all G10 currencies. Gold and silver rise over 1%, while platinum climbs more than 1.5%.

Natural gas futures rise over 4.5% to 1-month highs, driven by lower U.S. supply. Oil trades over 1% higher and has already rebounded around 10% from local lows. The start of U.S.–China talks this weekend may increase volatility.

Cryptocurrencies continue upward momentum, with Bitcoin holding above $102,000. Ethereum posts strong gains, rising over 6% to $2,350; the Trump token jumps 13%.