- Asian stocks advance after rebound on Wall Street
Asian shares rose for the first time in four days, mirroring gains in the US that placed the S&P 500 index on the
brink of a bull market. A regional stock gauge gained 0.4% with advances in Australia, Japan and South Korea
after the S&P 500 index climbed for a sixth straight day. Treasuries were steady at the open in Asia after
whipsawing on Monday with the downgrading of US debt. The dollar edged higher along with US equity-index
futures. Gold dipped 0.2% after gaining in the prior session. - S&P 500 ekes out sixth winning day as investors look past U.S. credit downgrade
The S&P 500 posted a slim gain on Monday as Treasury yields came off their highs and investors sought to look
past Moody’s downgrade of the United States’ credit rating. The benchmark added 0.09% and closed at
5,963.60, marking its sixth consecutive winning session. The Nasdaq Composite inched up 0.02% to end at
19,215.46. The Dow Jones Industrial Average rose 137.33 points, or 0.32%, and settled at 42,792.07. The 30
stock index was aided by a rebound in UnitedHealth, which saw an 8% jump after a recent bout of hard selling. - Oil prices rise on signs of faltering U.S.-Iran nuclear talks
Oil prices edged up on Tuesday on a potential breakdown in talks between the U.S. and Iran over Tehran’s
nuclear program and the weakened prospects of more Iranian oil supplies entering the global market.
Brent futures rose 12 cents to $65.66 a barrel by 0008 GMT. U.S. West Texas Intermediate crude
futures climbed 16 cents to $62.85. Discussions between Iran and the U.S. over Tehran’s nuclear program “will
lead nowhere” if Washington insists that Tehran slashes its uranium enrichment activity entirely, Iran’s Deputy
Foreign Minister Majid Takhtravanchi was quoted saying in state media on Monday. On Sunday, U.S. special
envoy Steve Witkoff reiterated that Washington would require any new deal between the U.S. and Iran would
include an agreement to refrain from enrichment, a precursor to the development of nuclear bombs. An
agreement between the two sides would have paved the way for the easing of U.S. sanctions and allowed Iran
to raise its oil exports by 300,000 barrels to 400,000 barrels per day, StoneX analyst Alex Hodes said. A U.S.
sovereign downgrade by Moody’s, meanwhile, dampened the economic outlook for the world’s biggest energy
consumer and kept oil prices from rising higher. The ratings agency cut America’s sovereign credit rating by
one notch on Friday, citing concerns about the nation’s growing $36 trillion in debt. Additional pressure
on oil prices was exerted by data showing decelerating industrial output growth and retail sales in China, the
world’s top oil importer. Prices could whipsaw in the near term on tariffs, U.S.-Iran talks, economic uncertainty
and the war between Russia and Ukraine. - Gold eases as Russia-Ukraine ceasefire optimism curbs safe-haven demand
Gold prices eased on Tuesday, as a slightly firmer dollar and optimism over a potential ceasefire between
Russia and Ukraine dampened investor demand for safe-haven assets. Spot gold was down 0.4% at $3,215.31
an ounce, as of 0210 GMT. U.S. gold futures slipped 0.5% to $3,218.40. The dollar slightly recovered after
touching a more than one-week low in the prior session, making greenback-priced gold less appealing to
holders of other currencies. “We are seeing the knee-jerk response to the U.S. credit downgrade wear off and
there’s some hope of a truce between Ukraine and Russia,” Capital.com’s financial market analyst Kyle Rodda
said. U.S. President Donald Trump spoke with President Vladimir Putin on Monday and said Russia and Ukraine
will immediately start negotiations toward a ceasefire. “We are seeing buyers emerge on dips below $3,200.
However, I think we are due a bigger pullback, especially if there’s further easing in geopolitical risks and we
see upward pressure on yields building from U.S. fiscal policy.” Rodda added. Gold, which is considered a safe
asset amid geopolitical and economic uncertainties, has hit multiple record highs this year and is up about 23%
so far this year. U.S. Federal Reserve officials on Monday took on cautiously the ramifications of the latest
downgrade of the U.S. government’s credit rating and unsettled market conditions as they continued to
navigate a very uncertain economic environment. Spot silver fell 0.3% to $32.25 an ounce. - Russia and Ukraine to ‘immediately’ start ceasefire talks, says Trump
US President Donald Trump says Russia and Ukraine will “immediately” start negotiating towards a ceasefire
and an end to the war, after a two-hour phone call with Russian counterpart Vladimir Putin. Trump, who
described the conversation as having gone “very well”, also said conditions for peace would need to be
negotiated between the two parties. Despite the note of optimism from Trump, who also spoke with Ukrainian
President Volodymyr Zelensky, any ceasefire or peace deal does not appear close. Putin said he was ready to
work with Ukraine on a “memorandum on a possible future peace agreement”, while Zelensky said “this is a
defining moment”, and urged the US not to distance itself from talks. - India eyes interim trade deal with US ahead of July tariff deadline
India is negotiating a three-stage trade agreement with the U.S. and aims to finalize an interim deal before July,
when President Donald Trump’s proposed reciprocal tariffs are set to take effect, Bloomberg reported on
Monday, citing officials familiar with the matter. The initial phase is expected to cover market access for
industrial and select agricultural goods, along with easing non-tariff barriers such as quality control
requirements, Bloomberg stated. The second stage could follow from September to November and may
include broader terms across 19 identified sectors, according to the report. A final, comprehensive pact would
require U.S. congressional approval and may be concluded next year, the Bloomberg report stated. The talks
are still ongoing, and there’s no clarity yet on U.S. support for the three-stage deal, Bloomberg said. Indian
Commerce Minister Piyush Goyal is in Washington this week to meet U.S. Trade Representative Jamieson Greer
and Commerce Secretary Howard Lutnick to advance discussions. India has threatened retaliatory tariffs in
recent days, signaling a harder stance, while Trump has publicly downplayed urgency and claimed India offered
to cut tariffs to zero. - Australia cuts policy rate to 2-year low as inflation concerns continue to recede
Australia’s central bank cut its policy rate by 25 basis points to the lowest in two years as inflation concerns in
the country continue to recede, giving room for the bank to ease monetary policy. The Reserve Bank of
Australia cut the benchmark rate to 3.85%, its lowest level since May 2023, in line with expectations from
economists polled by Reuters. Australia’s inflation has been on a downtrend, with the most recent headline
inflation figure coming in at a four-year low of 2.4% in the first quarter of 2025. The RBA said in its previous
monetary policy statement that returning inflation sustainably to its target of between 2% and 3% “within a
reasonable timeframe” is its highest priority, although it also acknowledged that the outlook was uncertain.
The Australian economy has also seen somewhat of a turnaround, with the most recent GDP reading showing
a 1.3% year-on-year expansion in the fourth quarter and marking its first expansion since September 2023.
However, analysts, ahead of the RBA meeting, have highlighted downside risks for the Australian economy due
to global trade tensions and uncertainty around the domestic economy. In a May 16 note, HSBC analysts noted
that “the global economy and financial markets have had tumultuous times” since the RBA’s last meeting on
April 1, including the imposition — and subsequent suspension — of U.S. President Donald Trump’s “Liberation
Day” tariffs. The analysts forecasted a “modest negative growth impact” on the country, and said that the
market shocks are likely slightly disinflationary for Australia. This is due to weaker expected global growth and
trade diversion of manufactured goods from China into non-U.S. markets, including Australia. - Trump says willing to travel to China for direct talks with Xi Jinping
U.S. President Donald Trump has indicated his willingness to travel to China for direct talks with President Xi
Jinping on foreign policy and economic issues. In an interview aired Friday on Fox News’s “Special Report with
Bret Baier,” Trump responded affirmatively when asked about the possibility of such a diplomatic trip. This
development comes amid a temporary easing of trade tensions between the two nations. On May 12, the U.S.
and China agreed to a 90-day tariff pause, reducing U.S. tariffs on Chinese imports from 145% to 30%, while
China lowered its duties on U.S. goods from 125% to 10%. Despite this truce, underlying issues persist, and the
trade environment remains strained. U.S. Treasury Secretary Scott Bessent said in televised interviews on
Sunday that President Donald Trump plans to move forward with the previously threatened tariffs on trade
partners who fail to engage in “good faith” negotiations. - 30-year Treasury passes 5% after Moody’s downgrades U.S. credit rating
U.S. Treasury yields spiked on Monday after Moody’s downgraded the U.S.′ credit rating, citing fiscal concerns.
At 4:46 a.m. ET, the 30-year Treasury yield was up over 10 basis points to 5.021%. The 10-year yield also rose
10 basis points to reach 4.542%. Meanwhile, the 2-year Treasury yield was up over 2 basis points, reaching 4%. - UK and European Union agree deal hailing a ‘new chapter’ in post-Brexit relations. The U.K. and European
Union announced a landmark deal to reset relations Monday after Britain’s acrimonious exit from the bloc
in 2020
British officials said the signing of the agreement — which covers a range of matters including security, energy,
trade, travel and fisheries — with EU officials in London marked a “historic day” for the two sides, and a new
chapter in their relationship after years of tense post-Brexit relations. The new deal will “support British
businesses, back British jobs, and put more money in people’s pockets,” the British government said in a press
release. It added that it will also help make food cheaper, slash red tape, open up access to the EU market and
add nearly £9 billion ($12 billion) to the U.K. economy by 2040. The deal will make it easier for food and drink
to be imported and exported as it reduces red tape for businesses which had led to lengthy lorry queues at the
border. Some routine checks on animal and plant products will also be removed completely, allowing goods to
flow freely again, the government said. “The EU is the U.K.’s largest trading partner. After the 21% drop in
exports and 7% drop in imports seen since Brexit, the U.K. will also be able to sell various products, such as
burgers and sausages, back into the EU again, supporting vital British industries,” it added. In addition, both
sides agreed on a new “Security and Defence Partnership,” paving the way for the U.K. defense industry to
participate in the EU’s proposed new £150 billion “Security Action for Europe” defense fund. The deal also
extends fishing rights for EU trawlers in U.K. waters until 2038, an agreement particularly coveted by Brussels
as an existing deal was due to expire next year. - Paramount ousts CBS News CEO Wendy McMahon amid divide with leadership
CBS News Chief Executive Officer Wendy McMahon announced Monday she is stepping down, the latest twist
in a growing battle of wills between the company’s news division and Paramount Global controlling
shareholder Shari Redstone. Paramount Global co-CEO George Cheeks had a discussion with McMahon
Saturday and asked for her resignation, according to people familiar with the matter. McMahon agreed to step
down, and the Paramount Global board held a meeting Sunday at which members were made aware of the
decision, according to those people, who spoke on the condition of anonymity to discuss internal matters. - Fed’s Bostic says he’s ‘leaning’ toward just one rate cut this year
Atlanta Fed President Raphael Bostic told CNBC on Monday that he currently prefers only one rate cut this year
as the central bank tries to balance potential upward pressures on inflation with worries of a recession.
The Federal Reserve released projections in March that pointed toward two quarter-point rate reductions in 2025.
However, Bostic said Monday that the tariffs have been larger than the central bank expected at the
start of the year. “For me right now, I’m expecting it’s going to take a bit longer for that to sort out. … I’m
leaning much more into one cut this year, because I think it will take time, and then we’ll sort of have to see,”
Bostic said on “Squawk Box.” - JPMorgan shares fall as much as 2.1%, hitting a session low after an executive at the lender said
investment banking fees will fall. A slump in Goldman Sachs and other Wall Street bank stocks deepened
after the comments
“In investment banking, we expect the second-quarter IB fees to be down mid-teens, plus or minus year-on
year, depending on how the remainder of the quarter plays out,” Troy Rohrbaugh, co-CEO of commercial and
investment banking, said during the firm’s investor day.Rohrbaugh also said the bank expects second-quarter
markets up mid-to-high single digits. The broad fee pool is unlikely to go back to pre-Covid period, when
interest rates were near zero and monetary stimulus injected liquidity, he said. - UnitedHealth Group shares rose 8% Monday, buoyed by news that five company insiders including new
CEO Stephen Hemsley bought stock in the battered health insurer
UnitedHealth Group stock finished at $315.89, up 8.2%, after falling 23% last week. The stock was the top
performer on Monday in both the S&P 500 and Dow Jones Industrial Average.mHemsley purchased about $25
million of UnitedHealth stock on Friday — 86,700 shares at an average price of $288.57 — according to a Form
4 filing with the Securities and Exchange Commission late Friday. Before the purchases, he owned about 1.2
million shares. One analyst said the purchases were a favorable sign for the stock, which is still off 37% this
year, the worst performer in the Dow Industrials. “Heavy insider buying in a short period is one of the best
‘tells’ savvy investors can observe for a prospective stock. Last week, UNH insiders put their money where their
mouth is and bought a sizable amount of stock,” wrote Andrew Rocco, Stock Strategist at Zacks Investment
Research. “Such concentrated insider buying leads me to believe that insiders are confident that the company’s
issues will be resolved, and possibly soon.” UnitedHealth shares fell sharply last week after the company
surprised Wall Street by pulling financial guidance for 2025 and brought Hemsley back to the CEO role,
replacing Andrew Witty, who stepped down for “personal reasons,” the company said. Hemsley had been CEO
from 2006 to 2017. - First Solar (NASDAQ:FSLR) and AES Corp. (AES) are Monday’s two biggest losers on the S&P 500, -7.1%
and -4.2% respectively, after conservative Republican lawmakers in the U.S. House secured a commitment
from leadership to end clean energy tax credits earlier than planned, as part of a compromise aimed at
allowing President Trump’s tax and spending package to advance, Bloomberg reported
Alternative energy stocks trade broadly lower, including Sunrun (RUN) -9%, Shoals Technologies (SHLS) -5.8%,
Bloom Energy (BE) -5.4%, Array Technologies (ARRY) -4.3%, Fluence Energy (FLNC) -4.2%, Solaredge
Technologies (SEDG) -4.1%, Enphase Energy (ENPH) -2.9%, Maxeon Solar (MAXN) -2.4%, Sunnova Energy
(NOVA) -1.8%. South Carolina Representative Ralph Norman, one of four Republican members negotiating the
package, said House leadership had agreed to a proposal to end Inflation Reduction Act tax credits earlier than
an original proposal that had called for several energy credits, including a tax incentive for clean energy
production, to phase out beginning in 2029 and ending in 2032. House Republican leadership staff told
reporters Monday that a phase-out date has not been decided and it remains to be seen if it would cover
shovel-ready projects. - BNP Paribas SA has launched the share buyback planned for 2025, worth €1.08 billion ($1.2 billion), it
said in a statement on Monday
The French bank received the approval from the European Central Bank and “a contract was concluded with
an investment services provider acting independently,” it said. The purchase period starts today and will end
on June 20 at the latest. BNP Paribas held its annual general meeting last week where shareholders confirmed
Chief Executive Officer Jean-Laurent Bonnafe for another three-year term as director. That cleared the way for
him to become one of Europe’s longest-serving bank CEOs. Shares of the French lender have outperformed the
broader industry during Bonnafe’s tenure, almost tripling in value since he took over in late 2011. BNP Paribas
Investors Back New Term for CEO Jean-Laurent Bonnafe.
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