Stock Futures Rise on Trade Talks, Dollar Weakens: Markets Wrap

(Bloomberg) — Stock-index futures advanced and Asian equities edged up as progress in several trade negotiations boosted risk appetite.

Contracts for the S&P 500 rose 0.4% after the index closed at a record Friday. Futures for European stocks advanced 0.4%. Asian shares rose 0.2% with the Nikkei-225 index jumping 1.5% after Japan’s top negotiator extended his stay in the US for further talks. The Canadian dollar strengthened after the country rescinded its digital services tax to advance discussions with the US.

A gauge of the dollar dipped 0.2% as Senate negotiations continued over President Donald Trump’s $4.5 trillion tax-cut package. The Bloomberg Dollar Spot Index has posted its worst start to a year since at least 2005. Crude oil fell 0.5% as traders wound back risk premiums before the OPEC+ meeting. 

On Friday, US stocks rose to a fresh all-time high for the first time since February, underscoring the conviction the economy is withstanding policy uncertainties. Trump in April put tariffs on dozens of trading partners on pause for three months, providing a boost for equities. A gauge of Asian stocks is set to climb more than 4% for a second month as investors look past tariff angst and recent tensions the Middle East.

“With the US at all time highs, everyone’s happy. Markets are in a good place,” said Joshua Crabb, head of Asia Pacific equities at Robeco, on Bloomberg Television. “That’s the time to be a little bit more wary. Valuations do matter. Geopolitical issues are still around, tariff negotiations are still ongoing. So I do think one needs to have a degree of caution in the way they’re looking at markets at the moment.”

 

India’s trade team also extended its stay in Washington to iron out differences as the two sides look to clinch a deal before the July 9 deadline, people familiar with the matter said. The in-person negotiations were initially supposed to run through June 27 but were extended by a day, raising hopes of an interim trade deal.

Canada withdrew its digital services tax on technology companies in a move to restart talks with the US. Prime Minister Mark Carney and Trump agreed that the two countries will resume negotiations with a view toward agreeing on a deal by July 21.

Taiwan too said it’s made “constructive progress” in a second round of trade talks with the US.

“The momentum and trends seen in risky markets portray an almost nirvana environment in which to operate,” Chris Weston, head of research at Pepperstone Group, wrote in a note. Rapid reduction of geopolitical risks and expectations about imminent trade deals are “all adding tailwinds to risk markets.”

Wall Street traders have dodged a flurry of tariff headlines to drive stocks to all-time highs. A surge in equities after April’s meltdown drove the S&P 500 to its first record since February, with the gauge topping 6,170. The index has gained 10% this quarter, its sixth advance in seven quarters.

Separately, negotiations over Trump’s tax-cut bill are continuing as Republicans seek to convince holdouts to support it for final passage, with a vote set to spill into Monday. The nonpartisan Congressional Budget Office estimates the measure would add nearly $3.3 trillion to US deficits over a decade.

Republicans in Congress broadly support the $4.5 trillion worth of tax cuts in the package, which extend the 2017 tax cuts and create new breaks for tipped and hourly workers, along with seniors and car buyers. But the $1.2 trillion worth of spending cuts have created numerous problems.

Trump has not delved into the details of the legislation. Instead, the president has pushed for speed, demanding that Congress deliver the bill to him by July 4. The House will also need to vote on the Senate-passed version before it can go the president’s desk to be signed into law.

Meanwhile, China’s factory activity improved for a second month – but remained in contraction – as trade rebounded after the ceasefire in the tariff war with the US. The offshore yuan extended its gain after the data release and was 0.2% stronger at 7.1626 per dollar. Shares in Hong Kong and mainland China fluctuated.

Some of the main moves in markets:

Stocks

• S&P 500 futures rose 0.4% as of 1:23 p.m. Tokyo time
• Japan’s Topix rose 0.7%
• Australia’s S&P/ASX 200 rose 0.6%
• Hong Kong’s Hang Seng fell 0.4%
• The Shanghai Composite rose 0.2%
• Euro Stoxx 50 futures rose 0.3%

Currencies

• The Bloomberg Dollar Spot Index fell 0.2%
• The euro was little changed at $1.1714
• The Japanese yen rose 0.4% to 144.14 per dollar
• The offshore yuan rose 0.1% to 7.1637 per dollar

Cryptocurrencies

• Bitcoin rose 1% to $108,481.51
• Ether rose 2.9% to $2,503.12

Bonds

• The yield on 10-year Treasuries advanced one basis point to 4.29%
• Japan’s 10-year yield advanced two basis points to 1.445%
• Australia’s 10-year yield advanced five basis points to 4.18%

Commodities

• West Texas Intermediate crude fell 0.5% to $65.20 a barrel
• Spot gold rose 0.1% to $3,278.07 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Matthew Burgess, Joanna Ossinger, Abhishek Vishnoi and Joanne Wong.

©2025 Bloomberg L.P.