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Stock markets diverged and the dollar dropped on Monday as investors digested key economic data and looked to a fresh round of China-US trade talks.Asian markets caught up with gains Friday on Wall Street and in Europe on news that the United States created a forecast-beating 139,000 jobs last month.That helped offset official data on Monday showing Chinese exports grew at a slower pace than expected last month and concerns over the US economy amid President Donald Trump’s tariffs blitz.The Chinese data “created hope of further interventions from Beijing to stoke the economy and investors also looked ahead to talks between US and Chinese officials in London aimed at reaching an agreement on trade”, noted AJ Bell investment director Russ Mould.The talks come days after Trump and Chinese counterpart Xi Jinping held their first publicly announced telephone talks since the Republican returned to the White House.They were helped by news that Beijing had on Saturday approved some applications for rare-earth exports, while US aviation giant Boeing will start sending commercial jets to China for the first time since April.The impact of the trade row was highlighted on Monday in data showing Chinese exports to the United States sank more than 34 percent on-year in May and almost 13 percent from the previous month.However shipments to other regions, including the European Union and countries in the Association of Southeast Asian Nations, surged.Separate data showed Chinese consumer prices fell in May for the fourth straight month.Optimism that the two sides could make a breakthrough boosted Asian markets, with Hong Kong up more than one percent, while Tokyo, Shanghai, Seoul, Singapore, Mumbai, Bangkok, Taipei and Manila also advanced.However, London, Paris and Frankfurt struggled around the half-way stage.The Asian gains followed a strong lead from Wall Street, where all three main US indices closed more than one percent higher Friday.Eyes will now turn to the Federal Reserve as it decides whether to lower interest rates, even as many economists warn that Trump’s tariffs could reignite inflation, hit supply chains and drag on consumer sentiment.”The May minutes and recent comments by several (policy board) members… suggest the Fed is highly attentive to the risk that tariffs will lead to a persistent inflation shock,” wrote analysts at Bank of America.- Key figures at around 1040 GMT -London – FTSE 100: DOWN 0.1 percent at 8,829.36 pointsParis – CAC 40: DOWN 0.1 percent at 7,797.24 Frankfurt – DAX: DOWN 0.4 percent at 24,208.85Tokyo – Nikkei 225: UP 0.9 percent at 38,088.57 (close)Hong Kong – Hang Seng Index: UP 1.6 percent at 24,181.43 (close)Shanghai – Composite: UP 0.4 percent at 3,399.77 (close)New York – Dow: UP 1.1 percent at 42,762.87 (close)Euro/dollar: UP at $1.1421 from $1.1397 on FridayPound/dollar: UP at $1.3566 from $1.3529Dollar/yen: DOWN at 144.12 yen from 144.81 yenEuro/pound: DOWN at 84.18 pence from 84.23 penceBrent North Sea Crude: UP 0.3 percent at $66.67 per barrelWest Texas Intermediate: UP 0.3 percent at $64.79 per barrel

Chinese exports grew at a slower pace than expected in May, official figures published Monday showed, hours ahead of expected talks between Beijing and Washington aimed at easing a gruelling trade war.Imports fell more dramatically than expected last month, with weak domestic consumption in the world’s number two economy highlighted by data earlier in the day revealing another month of falling prices.The 4.8 percent year-on-year increase in overseas shipments last month was slower than the 8.1 percent growth recorded in April, also falling short of the six percent jump that was forecast in a survey of economists by Bloomberg.It comes as representatives from China and the United States are expected to meet in London on Monday for another round of high-stakes trade talks that markets hope will ease tensions between the economic superpowers.Monday’s reading included a 12.7 percent plunge in exports to the United States compared with April, when US President Donald Trump unveiled his eye-watering tariffs on China.May’s exports to the United States also represented a year-on-year decline of more than one third — the steepest slide since early 2020.In contrast, customs data showed shipments to Vietnam increased from the previous month.Those to other Southeast Asian countries including Malaysia, Thailand, Singapore and Indonesia all declined slightly after soaring in April, the figures indicated.”The acceleration of exports to other economies has helped China’s exports remain relatively buoyant in the face of the trade war,” wrote Lynn Song, chief economist for Greater China at ING, noting that shipments to Southeast Asian nations were up 14.8 percent year-on-year.China’s overall imports in May dropped 3.4 percent year-on-year, coming up short of the 0.8 percent decline forecast by the Bloomberg survey.Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said the trade outlook “remains highly uncertain”. He pointed to the impact of “frontloading”, when overseas buyers increase shipments ahead of potentially higher tariffs.- Spending slump -Monday’s data added to concerns about the Chinese economy, with a report from the National Bureau of Statistics (NBS) showing the consumer price index — a key measure of inflation — dropped 0.1 percent year-on-year in May.The reading, which was slightly better than expected but marks the fourth straight month of falling prices, comes as Beijing struggles to boost domestic consumption that has been sluggish since the end of the pandemic.The failure of leaders to kickstart demand threatens their official growth targets and complicates their ability to shield the economy from Trump’s tariff blitz.While deflation suggests the cost of goods is falling, it poses a threat to the broader economy as consumers tend to postpone purchases under such conditions in the hope of further reductions.A lack of demand can then force companies to cut production, freeze hiring or lay off workers, while potentially also having to discount existing stock — dampening profitability even as costs remain the same.- Fresh talks -The London talks will be the second set of formal negotiations between the two since Trump launched his global trade blitz on April 2.They were announced after a phone call last week between Trump and Chinese President Xi Jinping.China and the United States paused sky-high tariffs after the first round in Geneva in mid-May but failed to reach a sweeping trade deal.Zichun Huang, China economist at Capital Economics, said Beijing’s export growth was expected to “slow further by year-end” with tariffs “likely to remain elevated”.A key issue in Monday’s negotiations will be Beijing’s shipments of rare earths that are crucial to a range of goods, including electric vehicle batteries, and which have been a bone of contention for some time.Customs figures on Monday showed Chinese exports of rare earth minerals rose last month to 5,865 tonnes from 4,785 tonnes in April.But last month’s figure still represented a decline from May last year, when China exported 6,217 tonnes of rare earths.

Asian stocks rallied Monday on hopes that a fresh round of China-US trade talks later in the day will ease tensions between the economic superpowers, while investors were also cheered by forecast-topping US jobs data.The gains extended a run-up across global markets in recent weeks as fears about President Donald Trump’s tariff blitz subside and countries make deals with Washington.All eyes are on London, where top officials from China and the United States are due to meet for more negotiations aimed at preserving a fragile truce agreed last month that slashed eye-watering tit-for-tat levies.The talks come days after Trump and Chinese counterpart Xi Jinping held their first publicly announced telephone talks since the Republican returned to the White House.They were helped by news that Beijing had on Saturday approved some applications for rare-earth exports, while aviation giant Boeing will start sending commercial jets to China for the first time since April.The impact of the trade row was highlighted Monday in data showing Chinese exports to the United States sank more than 34 percent on-year in May and almost 13 percent from the previous month.However shipments to other regions including the European Union and the Association of Southeast Asian Nations surged.Separate data showed Chinese consumer prices fell in May for the fourth straight month.Optimism that the two sides will make a breakthrough boosted Asian markets, with Hong Kong up more than one percent, while Tokyo, Shanghai, Seoul, Singapore, Mumbai, Bangkok, Taipei and Manila also advanced.However, London, Paris and Frankfurt struggled.The Asian gains followed a strong lead from Wall Street, where all three main indexes closed more than one percent higher after figures showing the world’s largest economy created a forecast-beating 139,000 jobs last month.While the figures for the previous two months were revised down, the data indicated that the economy remained robust, and tempered worries sparked by Wednesday’s report by payroll firm ADP showing a big miss on private hiring.Eyes will now turn to the Federal Reserve as it decides whether to lower interest rates, with many economists warning that Trump’s tariffs could reignite inflation, hit supply chains and drag on consumer sentiment.”The May minutes and recent comments by several (policy board) members… suggest the Fed is highly attentive to the risk that tariffs will lead to a persistent inflation shock,” wrote analysts at Bank of America.”Those risks could come into focus for markets by the fall.”Michael Hewson at MCH Market Insights remained positive on the outlook for the US economy.”For now, the US economy continues to look reasonably resilient although the recent ADP jobs report showed some evidence of a slowdown in May,” he said in a commentary.”However on the whole there is little sign that the economy is on the cusp of an economic shock at the moment, despite the unpredictable nature of the current US administration.”- Key figures at around 0810 GMT -Tokyo – Nikkei 225: UP 0.9 percent at 38,088.57 (close)Hong Kong – Hang Seng Index: UP 1.6 percent at 24,181.43 (close)Shanghai – Composite: UP 0.4 percent at 3,399.77 (close)London – FTSE 100: DOWN 0.1 percent at 8,833.33Euro/dollar: UP at $1.1421 from $1.1397 on FridayPound/dollar: UP at $1.3565 from $1.3529Dollar/yen: DOWN at 144.15 yen from 144.81 yenEuro/pound: DOWN at 84.20 pence from 84.23 penceWest Texas Intermediate: DOWN 0.5 percent at $64.23 per barrelBrent North Sea Crude: DOWN 0.5 percent at $66.11 per barrelNew York – Dow: UP 1.1 percent at 42,762.87 (close)

Chinese exports grew slower than expected in May, according to official data Monday, as shipments to the United States tumbled amid global trade turmoil triggered by Donald Trump’s tariff blitz.The figures also showed imports suffered a forecast-beating drop, with weak domestic consumption in the world’s number two economy highlighted by data earlier in the day revealing another month of falling prices.The 4.8 percent year-on-year drop in overseas shipments last month was an improvement on April but  bigger than the 6.0 percent forecast in a survey of economists by Bloomberg.The reading included a 12.7 percent plunge in exports to the United States compared with April, when Trump unveiled his eye-watering tariffs on China. Imports from the US tanked 17.9 percent after Beijing imposed tit-for-tat measures. Exports tumbled by a third year-on-year in May.In contrast, the data showed shipments to Vietnam increased from the previous month. Those to other Southeast Asian countries including Malaysia, Thailand, Singapore and Indonesia all declined slightly after soaring in April, the figures indicated.”The trade war between China and the US led to sharply lower exports to the US, but the damage was offset by stronger exports to other countries,” Zhiwei Zhang, resident and Chief Economist at Pinpoint Asset Management, said in a note.”The trade outlook remains highly uncertain at this stage,” he added, pointing to the impact of “frontloading”, when overseas buyers increase shipments ahead of potentially higher tariffs.Monday’s readings added to concerns about the Chinese economy, with a report from the National Bureau of Statistics (NBS) showing the consumer price index — a key measure of inflation — dropped 0.1 percent year on year in May.The reading, which was slightly better than expected but marks the fourth straight month of falling prices, comes as Beijing struggles to boost the sluggish domestic consumption seen since the end of the pandemic.Leaders’ failure to kickstart demand threatens their official growth targets and complicates their ability to shield its economy from Trump’s tariff blitz.While deflation suggests the cost of goods is falling, it poses a threat to the broader economy as consumers tend to postpone purchases under such conditions, hoping for further reductions.A lack of demand can then force companies to cut production, freeze hiring or lay off workers, while potentially also having to discount existing stocks — dampening profitability even as costs remain the same.Deepening a slump that has now lasted more than two years, factory gate prices also dropped in May, the NBS said Monday.The producer price index decline of 3.3 percent — accelerating from a 2.7 percent drop in April — was faster than the 3.2 percent estimated in the Bloomberg survey.Representatives from China and the United States are expected to meet on Monday in London for another round of high-stakes trade talks markets hope will ease tensions between the economic superpowers.A key issue in the negotiations will be Beijing’s shipments of rare earths, crucial to a range of goods including electric vehicle batteries and which have been a bone of contention between the two for some time.Figures Monday showed Chinese exports of 17 minerals rose last month to 5,865 from 4,785 tons in April.The London talks will be the second set of formal negotiations between the two since Trump launched his global trade blitz on April 2.They were announced after a phone call last week between Trump and Chinese President Xi Jinping, which the US president described as “very good”.The first round, held in mid-May in Geneva, saw the two pause sky-high tariffs but fail to reach a sweeping trade deal.

Chinese consumer prices fell for the fourth straight month in May, data showed Monday, as the world’s second biggest economy struggles with sluggish spending and global trade turmoil.Beijing has failed to boost sluggish domestic consumption since the end of the pandemic, threatening official growth targets and complicating its ability to shield its economy from US President Donald Trump’s tariff blitz.Representatives from the two countries are expected to meet on Monday in London for more high-stakes trade talks being closely watched for signs of a lasting deal on reducing levies.China’s consumer price index — a key measure of inflation — dropped 0.1 percent year on year in May, according to statistics published Monday by the National Bureau of Statistics (NBS).The reading was unchanged from April but slightly better than the 0.2 percent fall forecast in a Bloomberg survey of economists.While deflation suggests the cost of goods is falling, it poses a threat to the broader economy as consumers tend to postpone purchases under such conditions, hoping for further reductions.A lack of demand can then force companies to cut production, freeze hiring or lay off workers, while potentially also having to discount existing stocks — dampening profitability even as costs remain the same.”China continues to face persistent deflationary pressure,” Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, wrote in a note, adding that Beijing “needs to rely on domestic demand to fight the deflation”.Zhang said exports continued to perform well and support the economy, while warning that they will “probably slow as the frontloading fades out” — a reference to overseas buyers increasing shipments ahead of potentially higher tariffs.Trade figures for last month due later on Monday will also shed light on how the country’s exporters are faring.Deepening a slump that has now lasted more than two years, factory gate prices also dropped in May, the NBS said Monday.The producer price index declined 3.3 percent, accelerating from a 2.7 percent drop in April, and faster than the 3.2 percent estimated in the Bloomberg survey.The China-US talks in London will mark the second round of formal negotiations between the world’s two largest economies since Trump launched his global trade blitz in April.The first round of talks was held in mid-May in Geneva and saw them pause sky-high tariffs but fail to reach a sweeping trade deal.The latest negotiations are expected to include Chinese Vice Premier He Lifeng, US Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick.They were announced after a phone call last week between Trump and Chinese President Xi Jinping, which the US president described as “very good”.

US airlines and aerospace manufacturers insist they have no use for tariff protections, warning that the proposed Trump administration levies could eat into the healthy trade surplus the sector has enjoyed for more than 70 years.At the request of President Donald Trump, Commerce Secretary Howard Lutnick’s department launched an investigation on May 1 to determine whether to impose tariffs of between 10 and 20 percent on civil aircraft and parts, including engines.The US industry those tariffs were crafted to protect swiftly let the administration know it was not interested.”Imposing broad tariff or non-tariff trade barriers on the imports of civil aviation technology would risk reversing decades of industrial progress and harm the domestic supply chain,” the Aerospace Industries Association (AIA) said in a letter addressed to Lutnick and obtained by AFP.The interested parties were given until June 3 to communicate their positions.The very next day, Lutnick announced that Washington aimed to “set the standard for aircraft part tariffs” by the end of this month.”The key is to protect that industry,” he said, adding: “We will use these tariffs for the betterment of American industry.”But AIA and the Airlines for America (A4A) trade association voiced fear that far from helping, the tariffs would end up harming US manufacturers.- No fix needed -“Unlike other industries, the civil aviation manufacturing industry prioritizes domestic production of high-value components and final assembly,” AIA pointed out.According to the organization, US aerospace and defense exports reached $135.9 billion in 2023, including $113.9 billion for civil aviation alone.This allowed the sector to generate a trade surplus of $74.5 billion and to invest $34.5 billion in research and development, it said.The sector employs more than 2.2 million people in the United States across more than 100,000 companies, which in 2023 produced goods worth nearly $545 billion.In its response to Lutnick, the A4A highlighted how beneficial the international Agreement on Trade in Commercial Aviation (ATCA) had been by helping to eliminate tariffs and trade barriers over nearly half a century.”The US civil aviation industry is the success story that President Trump is looking for as it leads civil aerospace globally,” it insisted.A full 84 percent of production was already American, it said, stressing that Washington “does not need to fix the 16 percent” remaining.”The current trade framework has enhanced our economic and national security and is a critical component to maintaining our national security moving forward,” it said.For manufacturers, the potential tariffs would act like sand jamming a well-oiled machine that has been running smoothly for decades, experts warned.They would also throw off balance an ultra-sensitive supply chain still recovering from the Covid-19 pandemic.- ‘Competitive disadvantage’ -“To avoid the situation getting worse, we advocate to keep aerospace outside of trade wars,” Willie Walsh, head of the International Air Transport Association (IATA), told the organization’s general assembly last week.AIA meanwhile stressed that “aircraft and parts are already in high demand and have a limited supply.””Integrating new suppliers and expanding capacity is complex, timely, and costly,” it warned, pointing out that finding suppliers capable of meeting rigorous safety certifications could “take up to 10 years.”Delta Air Lines also argued for sticking with the status quo, cautioning that the proposed tariffs “would hinder Delta’s ability to maintain its current trajectory.””If component parts incur tariffs upon entering the United States, Delta will be at a competitive disadvantage to foreign competitors,” it said.”The action would also impose an unexpected tax on Delta’s purchases of aircraft contracted years in advance.”Delta chief Ed Bastian insisted in late April that the airline “will not be paying tariffs on any aircraft deliveries we take,” adding that it was “working very closely with (European group) Airbus” to minimize the impact.Delta pointed out in its letter to Lutnick that it currently had 100 aircraft on order from Boeing, and that it was demanding that its Airbus A220s be produced primarily in Mobile, Alabama.But if the tariffs are imposed, it warned, “Delta would likely be forced to cancel existing contracts and reconsider contracts under negotiation.” 

Major stock indexes pushed higher Friday as data showed the US labor market is resilient despite uncertainty over President Donald Trump’s tariffs, while upcoming US-China talks added to hopes of easing trade tensions.Tesla stocks regained some ground after plunging Thursday following a stunning public row between the company’s billionaire boss Elon Musk and Trump.A below-par reading on private hiring this week raised worries about the labor market and the outlook for the US economy ahead of a Labor Department jobs report, a key piece of data used by the Federal Reserve as it decides whether to adjust interest rates.But the report showed hiring in the world’s largest economy came in at 139,000 last month, above market expectations.The figure indicates that the US employment market is relatively healthy despite the jolts to financial markets, supply chains and consumer sentiment this year as Trump announced successive waves of tariffs.”There was concern that the labor market was buckling under the pressure of tariffs and weaker economic growth. However, the May report suggests that the labor market is softening, not falling off a cliff,” said Kathleen Brooks, research director at trading platform XTB, in a note.”The price action suggests that the market is not taking these risks too seriously, that they do not see a recession in the future and that investors still think that corporate earnings growth will be strong.”The state of the jobs market is critical given how important consumer spending is to the overall economy, said eToro US investment analyst Bret Kenwell.”While it may not be firing on all cylinders, it’s far from showing signs of a major breakdown.”Wall Street mounted a strong comeback, and Paris and London stocks closed higher.Frankfurt was near-flat after sentiment was knocked by the Bundesbank warning Germany could face two more years of recession if a trade war with the United States escalates sharply.For now, however, the eurozone economy is showing signs of resilience, with official data Friday indicating it expanded at a significantly faster pace than previously estimated in the first three months of the year.The EU’s data agency said the 20-country single currency area recorded growth of 0.6 percent over the January-March period from the previous quarter, up from the 0.3-percent figure published last month.- US-China talks -Equity markets were also buoyed as Trump announced US officials would meet a Chinese team in London on Monday to discuss a “trade deal” on both sides.”The meeting should go very well,” Trump added in a Truth Social post, a day after speaking with Chinese President Xi Jinping on the phone.Investors are hopeful that high-level engagements could bring an easing of tensions following Trump’s “Liberation Day” global tariff blitz that hit Beijing particularly hard.While a stunning public row between the US leader and his former adviser Musk sent Wall Street into the red Thursday, all three major US indexes closed higher on Friday.Shares in Musk’s electric vehicle company Tesla rose 3.7 percent after tanking a day prior.The president had threatened Musk’s multibillion-dollar government contracts and Tesla shares plummeted — wiping more than $100 billion from the company’s value.Oil prices rose on Friday, driven by the jobs data and nevertheless by prospects for a US-China trade detente, said Mark Bowman, an analyst at ADM Investors Services.- Key figures at around 2020 GMT -New York – Dow: UP 1.1 percent at 42,762.87 points (close)New York – S&P 500: UP 1.0 percent at 6,000.36 (close)New York – Nasdaq Composite: UP 1.2 percent at 19,529.95 (close) London – FTSE 100: UP 0.3 percent at 8,837.91 (close)Paris – CAC 40: UP 0.2 percent at 7,804.87 (close)Frankfurt – DAX: DOWN 0.1 percent at 24,304.46 (close)Tokyo – Nikkei 225: UP 0.5 percent at 37,741.61 (close)Hong Kong – Hang Seng Index: DOWN 0.5 percent at 23,792.54 (close)Shanghai – Composite: FLAT at 3,385.36 (close)Euro/dollar: DOWN at $1.1397 from $1.1444 on ThursdayPound/dollar: DOWN at $1.3529 from $1.3571Dollar/yen: UP at 144.81 yen from 143.58 yenEuro/pound: DOWN at 84.23 pence from 84.31 penceBrent North Sea Crude: UP 1.7 percent at $66.47 per barrelWest Texas Intermediate: UP 1.9 percent at $64.58 per barrelburs-rl-bys/sla

US President Donald Trump announced Friday a new round of trade talks with China in London next week, a day after calling Chinese counterpart Xi Jinping in a bid to end a bitter battle over tariffs.The talks in the British capital on Monday will mark the second round of such negotiations between the world’s two biggest economies since Trump launched his trade war this year.”The meeting should go very well,” said Trump in a post on his Truth Social platform.The president added that US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer would meet the Chinese team.The first talks between Washington and Beijing since Trump slapped levies on allies and adversaries alike took place in Geneva last month.While Trump had imposed a sweeping 10 percent duty on imports from most trading partners, rates on Chinese goods rocketed as both countries engaged in an escalating tariffs battle.In April, additional US tariffs on many Chinese products hit 145 percent while China hit back with countermeasures of 125 percent.Following the talks last month, both sides agreed to temporarily bring down the levels, with US tariffs cooling to 30 percent and China’s levies at 10 percent.But this temporary halt is expected to expire in early August and Trump last week accused China of violating the pact, underscoring deeper differences on both sides.US officials have accused China of slow-walking export approvals of critical minerals and rare earth magnets, a key issue behind Trump’s recent remarks.While Trump’s long-awaited phone call with Xi this week likely paved the way for further high-level trade talks, a swift resolution to the tariffs impasse remains uncertain.

Major stock markets and the dollar pushed higher Friday as key jobs data showed the US labour market is resilient in the face of uncertainty over President Donald Trump’s tariffs.Tesla stocks recovered after plunging Thursday due to a stunning public row between the company’s billionaire boss Elon Musk and Trump.A below-par reading on private hiring this week raised worries about the labour market and the outlook for the US economy ahead of the non-farm payrolls report, a key piece of data used by the Federal Reserve as it decides whether to move on interest rates.The data showed hiring in the world’s largest economy came in at 139,000 last month, just above market expectations.The figure indicates that the US employment market is relatively healthy despite the jolts to financial markets, supply chains and consumer sentiment this year as Trump announced successive waves of tariffs.”There was concern that the labour market was buckling under the pressure of tariffs and weaker economic growth. However, the May report suggests that the labour market is softening, not falling off a cliff,” said Kathleen Brooks, research director at trading platform XTB, in a note.”The price action suggests that the market is not taking these risks too seriously, that they do not see a recession in the future and that investors still think that corporate earnings growth will be strong.”The state of the jobs market is critical given how important consumer spending is to the overall economy, said eToro US investment analyst Bret Kenwell.”While it may not be firing on all cylinders, it’s far from showing signs of a major breakdown.”Wall Street mounted a strong comeback, and Paris and London stocks closed higher.Frankfurt closed flat after sentiment was knocked by the Bundesbank warning Germany could face two more years of recession if a trade war with the United States escalates sharply.For now, however, the eurozone economy is showing signs of resilience, with official data Friday showing it expanded at a significantly faster pace than previously estimated in the first three months of the year.The EU’s data agency said the 20-country single currency area recorded growth of 0.6 percent over the January-March period from the previous quarter, up from the 0.3-percent figure published last month.- US-China talks -Equity markets had been buoyed this week by hopes that talks between US President Donald Trump and Chinese counterpart Xi Jinping could lead to an easing of tensions following Trump’s “Liberation Day” global tariff blitz that targeted Beijing particularly hard.However optimism in markets from what Trump called the “very positive” talks Thursday was largely wiped out by a stunning public row between the US leader and his former adviser Musk that sent Wall Street into the red Thursday.The president threatened Musk’s multibillion-dollar government contracts and shares in his Tesla electric-vehicle manufacturer plummeted about 15 percent as the astonishing row escalated — wiping more than $100 billion from the company’s value.On Friday, Tesla shares bounced in early trading on Wall Street, back up more than five percent.Oil prices rose on Friday, driven by the jobs data and nevertheless by prospects for a trade detente after the Trump-Xi call, said Mark Bowman, an analyst at ADM Investors Services.- Key figures at around 1540 GMT -New York – Dow: UP 0.8 percent at 42,652.67 pointsNew York – S&P 500: UP 0.9 percent at 5,991.79New York – Nasdaq Composite: UP 1.1 percent at 19,512.92 London – FTSE 100: UP 0.3 percent at 8,837.91 (close)Paris – CAC 40: UP 0.2 percent at 7,804.87 (close)Frankfurt – DAX: FLAT at 24,304.46 (close)Tokyo – Nikkei 225: UP 0.5 percent at 37,741.61 (close)Hong Kong – Hang Seng Index: DOWN 0.5 percent at 23,792.54 (close)Shanghai – Composite: FLAT at 3,385.36 (close)Euro/dollar: DOWN at $1.1400 from $1.1444 on ThursdayPound/dollar: DOWN at $1.3530 from $1.3571Dollar/yen: UP at 144.79 yen from 143.58 yenEuro/pound: DOWN at 84.25 pence from 84.31 penceBrent North Sea Crude: UP 1.45 percent at $66.29 per barrelWest Texas Intermediate: UP 1.7 percent at $64.45 per barrelburs-rl/rlp/rmb

Major stock markets largely steadied and the dollar rose Friday awaiting key US jobs data in the face of uncertainty over the impact of President Donald Trump’s tariffs on the economy.Ahead of the employment figures due before Wall Street’s reopening, optimism from “very positive” talks Thursday between Trump and Chinese counterpart Xi Jinping was wiped out by the stunning public row between the US leader and Elon Musk.The much-anticipated discussions between the heads of the world’s biggest economies fuelled hopes for an easing of tensions following Trump’s “Liberation Day” global tariff blitz that targeted Beijing particularly hard.However, investors remained wary after an extraordinary social media row between Trump and billionaire former aide Musk that saw the two trade insults and threats and sent Wall Street into the red Thursday.Musk’s electric vehicle company Tesla tanked more than 14 percent and the president threatened his multibillion-dollar government contracts.Asian and European stock markets mostly steadied awaiting the US jobs figures, as oil prices flatlined.”Attention now turns to the non-farm payrolls report, which is often described as the most important individual economic release of any given month,” noted Richard Hunter, head of markets at Interactive Investor.A below-par reading on private hiring this week raised worries about the labour market and the outlook for the US economy.It came amid bets that the Federal Reserve is preparing to resume cutting interest rates from September, even as economists warn that Trump’s tariffs could reignite inflation.”There remains a huge amount of uncertainty caused by the US trade tariffs,” noted Kathleen Brooks, research director at trading group XTB.”If the US economy can generate decent jobs growth in this environment it would suggest an underlying resilience, which could boost stock markets, the dollar and overall risk sentiment,” she added. A day after cutting eurozone interest rates, the European Central Bank warned that Germany could face two more years of recession should a trade war with the United States escalate sharply.For now, however, the eurozone economy is showing signs of resilience, with official data Friday showing it expanded at a significantly faster pace than previously estimated in the first three months of the year.The EU’s data agency said the 20-country single currency area recorded growth of 0.6 percent over the January-March period from the previous quarter, up from the 0.3-percent figure published last month.Elsewhere, focus remained on the implosion of the Trump-Musk relationship.Trump said in a televised Oval Office diatribe Thursday that he was “very disappointed” with criticisms from his top donor of a “big, beautiful” spending bill before Congress, before threatening to tear up the tycoon’s multi-billion-dollar government contracts.Hitting back, South African-born Musk slammed Trump on his X social media platform for “ingratitude”, insisting that the Republican would not have won the 2024 election without him.Shares in Musk’s Tesla electric-vehicle manufacturer plummeted about 15 percent as the astonishing row escalated — wiping more than $100 billion from the company’s value.- Key figures at around 1030 GMT -London – FTSE 100: FLAT at 8,812.56 pointsParis – CAC 40: DOWN 0.1 percent at 7,783.81 Frankfurt – DAX: DOWN 0.2 percent at 24,277.35Tokyo – Nikkei 225: UP 0.5 percent at 37,741.61 (close)Hong Kong – Hang Seng Index: DOWN 0.5 percent at 23,792.54 (close)Shanghai – Composite: FLAT at 3,385.36 (close)New York – Dow: DOWN 0.3 percent at 42,319.74 (close)Euro/dollar: DOWN at $1.1421 from $1.1444 on ThursdayPound/dollar: DOWN at $1.3544 from $1.3571Dollar/yen: UP at 144.08 yen from 143.58 yenEuro/pound: UP at 84.32 pence from 84.31 penceBrent North Sea Crude: UP 0.1 percent at $65.38 per barrelWest Texas Intermediate: FLAT at $63.36 per barrelburs-bcp/rl