U.S.–China Trade Talks resume 09/06/2025

HOT stories for today

US market wrap:

• U.S. equities surged on Friday after the latest nonfarm payrolls report topped expectations, easing investor concerns over a potential near-term economic slowdown. The Dow Jones Industrial Average climbed 1.05%, while the S&P 500 advanced 1.03%, closing above the 6,000 mark for the first time since late February. The Nasdaq Composite led major indexes, jumping 1.20%.
• The rally was driven in part by a strong rebound in Tesla (TSLA), which rose over 3%, recovering some of Thursday’s sharp 14% loss that followed a public spat between CEO Elon Musk and President Donald Trump on social media.  The Bureau of Labor Statistics reported that U.S. payrolls increased by 139,000 in May, beating the Dow Jones estimate of 125,000. While markets welcomed the better-than-expected labor print, uncertainty lingers over the inflationary impact of recent tariff measures. However, trade tensions showed signs of easing late Friday, as Trump announced that U.S.–China negotiations are set to resume today in London, providing a potential boost to market optimism.

U.S.–China Trade Talks resume

• President Donald Trump confirmed that Treasury Secretary Scott Bessent, along with Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer, will meet Chinese officials in London on Monday for renewed trade negotiations. Leading the Chinese delegation is Vice Premier He Lifeng, Beijing’s top trade envoy, who will be in the U.K. through Friday. The announcement follows Trump’s recent call with President Xi Jinping, after which he posted, “The meeting should go very well.” The talks come amid continued friction.
• China has pushed back against recent U.S. tech restrictions and visa revocations, while the Trump administration accuses Beijing of delaying rare earth exports pledged during last month’s Geneva agreement. Despite a temporary easing of tariffs, tensions remain high. China’s Ministry of Commerce reiterated its compliance with global standards and promised to speed up export approvals, as both sides look to manage a relationship that saw $582 billion in trade last year.

Stock’s on the move:

• Petco Health and Wellness (WOOF) — Shares of the pet retailer tumbled 22% after reporting a first-quarter loss of $0.04 per share, double the $0.02 loss forecasted by analysts, according to FactSet.
• Tesla (TSLA) — The electric vehicle giant rebounded over 6%, recovering some ground after a sharp 14% drop the previous day amid a public clash between CEO Elon Musk and President Donald Trump.
• Omada Health (OMDA) — The digital health startup surged more than 30% in its Nasdaq debut, opening at $23 after pricing its IPO at $19, and quickly climbing to around $25 per share.
• Broadcom (AVGO) — The semiconductor company slipped 2.7% following a weaker-than-expected Q2 free cash flow of $6.41 billion, missing the $6.98 billion projected by analysts. Despite the miss, several firms raised their price targets on the stock.
• Lululemon (LULU) — Shares plunged 20% after the company issued a soft second-quarter forecast. CFO Meghan Frank said on an earnings call that Lululemon will implement targeted price increases across its product line to offset rising tariff costs.

.                                                   Watchlist: TSLA, AVGO, NVDA, PLTR, DOCU, VFS, NFLX


Today’s action

• Asian markets climbed on Monday as investors looked ahead to scheduled U.S.–China trade talks and processed fresh Chinese inflation and trade figures. China’s consumer price index slipped 0.1% year-over-year in May, less than the 0.2% decline expected by economists polled by Reuters. Meanwhile, the producer price index fell 3.3%, a slightly deeper drop than the 3.2% forecast. Export growth for May also came in below expectations, weighed down by a sharp decline in shipments to the United States. Mainland China’s CSI 300 rose 0.18%, while Hong Kong’s Hang Seng Index gained 1.01%.
• In the U.S., stock futures were mostly flat Sunday evening, with the S&P 500 hovering near record highs ahead of a busy week of economic data. S&P 500 futures edged down 0.1%, Nasdaq 100 futures dipped 0.2%, and Dow futures slipped 45 points, or 0.1%. Markets are bracing for key inflation updates, with CPI data due Wednesday and PPI figures out Friday, both likely to influence near-term policy and sentiment.

Bitcoin

• Bitcoin held firm on June 8, 2025, trading at $105,384 with a market cap of $2.09 trillion and 24-hour volume of $15.81 billion. The price moved in a tight range between $105,112 and $105,891, signaling low volatility and continued consolidation. Despite optimism in Asian markets driven by renewed U.S.–China trade talks, major cryptocurrencies showed limited upward movement. Caution prevailed as investors weighed macroeconomic uncertainty and looming regulatory risks. 
• The European Union is reportedly considering a Bitcoin ban, stoking concerns over its legal status in the region. Meanwhile, Ripple’s XRP and RLUSD gained attention as potential SWIFT alternatives in cross-border payments. Adding to the narrative, Elon Musk backed Coinbase’s warning that Bitcoin could eventually replace the U.S. dollar as the world’s reserve currency. With few clear catalysts, the crypto market remains in a holding pattern, balancing innovation potential against tightening global oversight.
  Watchlist: Bitcoin: 100 000-112 000, Ethereum:1500-2800, Solana: 80-183

Forex

• The EUR/USD pair traded flat around 1.1400 in Monday’s Asian session, following Friday’s losses. The euro struggled to regain momentum as the U.S. Dollar remained supported by strong May jobs data, which raised expectations that the Federal Reserve will keep interest rates unchanged through its next two meetings. Adding pressure, ECB policymaker Yannis Stournaras warned that U.S. tariff uncertainty could threaten growth in the Eurozone.
• Meanwhile, the Japanese Yen (JPY) gained ground, snapping a two-day losing streak after an upward revision to Japan’s Q1 GDP reinforced market expectations for more BoJ rate hikes. Additional selling pressure on the U.S. Dollar helped push the USD/JPY pair below the 144.50 mark to start the week.
  Watchlist: EUR/USD: 1.0700-1.1600, USD/JPY: 140-151

Basic Materials

• Gold (XAU/USD) fell for a third straight session on Monday, slipping below $3,300 as Friday’s strong U.S. jobs report cooled Fed rate cut expectations. The move comes after gold briefly topped $3,400 last week, though losses remain limited by a weaker U.S. Dollar, fiscal concerns, and geopolitical tensions.
• WTI crude edged lower to around $63.80, down 0.40% after hitting a multi-week high on Friday. Despite the pullback, optimism over U.S.–China trade talks and a soft dollar continue to support the outlook, with dip-buyers likely to emerge.
  Watchlist: GOLD 2600-3500, US Oil: 55.60-70.00

Key Economic Events Today:

EST time
10:00 am: USD Final Wholsesale Inventories


Earnings

BMO (Before the US Market opens)
VFS           VinFast Auto Ltd.
GHM          Graham Corp.
AMC (After the US Market closes): CASY, WDS
 

The TEFS Analyst team wishes you a successful day!