- Asian Stocks Rise on Optimism About Trade Talks: Markets Wrap
Asian stocks gained on Friday after US President Donald Trump signaled tariffs on Chinese goods may fall if the
official level talks this weekend go well. Japan’s Topix advanced for a 11th day, set for its longest winning streak
since October 2017. Hong Kong shares fluctuated. Treasuries were little changed at the open after yields surged
in the prior session, with traders paring bets on easing interest rates. Gold was on track for a third day of losses.
Investors remain focused on the outcome of the first official trade talks between the US and China this weekend
in Switzerland. Markets took some comfort and US stocks gained Thursday as Trump pitched his trade
framework with the UK as the first step in his effort to overhaul the global economy. Trump said he believed
the negotiations with China might result in tangible progress. - Dow closes 200 points higher after Trump announces outline of UK trade deal
Stocks rose Thursday after President Donald Trump announced a trade deal framework between the U.S. and
United Kingdom, the first major agreement hatched since the U.S. launched pre-emptive tariffs on most of the
globe earlier this year. The Dow Jones Industrial Average gained 254.48 points, or 0.62%, to settle at 41,368.45.
The S&P 500 rose 0.58% and closed at 5,663.94. The Nasdaq Composite advanced 1.07% to end at 17,928.14.
Trump announced the deal outline from the Oval Office with U.K. Prime Minister Keir Starmer on
speakerphone. A 10% baseline tariff will remain on the U.K., according to a graphic posted on Truth Social post
by Trump. However, the president noted that the 10% U.K. tariff could be on the low end of deals with future
countries and said that “some will be much higher because they have massive trade surpluses.” Otherwise, the
trade announcement was short on details and nothing was signed during the event. “The final details are being
written up,” Trump said. “In the coming weeks we’ll have it all very conclusive.” - Oil prices rise 3% on support from U.S.-China trade hopes
Oil prices rose about 3% on Thursday, buoyed by hopes of a breakthrough in looming trade talks between the
United States and China, the world’s two largest oil consumers. Brent crude futures gained $1.72, or 2.81%, to
close at $62.84 a barrel. U.S. West Texas Intermediate crude rose $1.84, or 3.17%, to settle at $59.91. U.S.
Treasury Secretary Scott Bessent will meet with China’s top economic official on May 10 in Switzerland for
negotiations over a trade war that is disrupting the global economy. Optimism around those talks was providing
support to the market, said SEB analyst Ole Hvalbye. The countries are the world’s two largest economies and
the fallout from their trade dispute was likely to lower crude consumption growth. Analysts cautioned that the
recent tariff-driven volatility in the oil market was not over. “The global risk premium that was pushing oil
prices up and down during the past couple of years has been replaced by a tariff premium that will also be
fluctuating in response to latest headlines out of the Trump administration,” Jim Ritterbusch, of U.S. energy
consultancy Ritterbusch and Associates, said in a note. In another trade development, U.S. President Donald
Trump announced a U.S.-UK trade deal that would create an aluminum and steel trading zone and secure the
pharmaceutical supply chain. On the supply front, the Organization of the Petroleum Exporting Countries and
its allies, known as OPEC+, will increase its oil output, pressuring prices. - Gold falls more than 1% after Trump announces UK trade deal
Gold extended losses and fell more than 1% on Thursday after U.S. President Donald Trump announced a trade
deal with the U.K., raising hopes of such deals with other countries. Spot gold slipped 1.7% to $3,307.84 an
ounce. U.S. gold futures settled 2.5% lower at $3,306. Trump and British Prime Minister Keir Starmer
announced a “breakthrough deal” on trade. A 10% tariff on goods imported from the UK remains in place while
Britain agreed to lower its tariffs to 1.8% from 5.1% and provide greater access to U.S. goods. “If we (also) get
a deal ironed out between U.S. and China, there’ll be a lot of resistance to the upside and gold should trade
back down to, at the very least to $3,200,” said Bob Haberkorn, senior market strategist at RJO Futures.
Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer are set to meet with China’s
top economic official on Saturday in Switzerland. Bullion, widely regarded as a hedge against geopolitical
uncertainty, had hit multiple record highs since Trump first announced his tariffs. Elsewhere, China’s central
bank has approved foreign exchange purchases by commercial banks to pay for gold imports under recently
increased quotas, two people with direct knowledge of the matter said. “Theoretically, this move should boost
gold prices as increased demand from China becomes a factor. However, current market dynamics are
dominated by developments surrounding tariffs,” said Zain Vawda, analyst at MarketPulse by OANDA.
Meanwhile, gold reserves in London vaults rose in April as more of the precious metal returned from New York
after dislocation. Market players had increased gold deliveries to the U.S. in the December-March period to
cover their COMEX positions against the possibility the U.S. would impose tariffs on imports. Spot silver fell to
$32.48, platinum gained 0.8% to $981.60 and palladium added 0.3% to $974.81. - China’s exports surge as shipments to Southeast Asian countries offset plunge in U.S. trade
China’s exports surged in April on the back of a jump in shipments to Southeast Asian countries, offsetting a
sharp drop in outbound goods to the U.S. as prohibitive tariffs kicked in. Exports jumped 8.1% last month in
U.S. dollar terms from a year earlier, according to data released by customs authority on Friday, sharply beating
Reuters’ poll estimates of a 1.9% rise. Imports slumped by just 0.2% in April from a year earlier, compared with
economists’ expectations of a 5.9% drop. China’s outbound shipments to the U.S. plunged over 21% in April
year on year, while imports dropped nearly 14%, according to CNBC’s calculation of official customs data. The
surge in overall exports could be partly due to transshipment through third countries and contracts that were
signed before the tariffs were announced, Zhiwei Zhang, president and chief economist at Pinpoint asset
management said in a note. Zhang expects trade data to weaken gradually in the next few months. China’s
exports to the Association of Southeast Asian Nations surged 20.8% in April from a year earlier, accelerating
from a 11.6% growth in March. While Vietnam and Malaysia remained the main destinations for Chinese
exports to the region, Indonesia and Thailand saw shipments from China grow 37% and 28% year on year,
respectively. Meanwhile, China’s exports to the European Union rose 8.3% while imports fell 16.5% year on
year. U.S. President Donald Trump has placed tariffs of 145% on all imports from China, prompting it to retaliate
with tariffs of 125% on American imports. So far, both sides have sought to blunt the economic impact of triple
digit levies by granting exemptions on certain critical products. The number of container vessels from China to
the U.S. had dropped dramatically toward the end of April, Raymond Yeung, chief economist for Greater China
at ANZ Bank said in a note Thursday. - Bitcoin jumps above $100,000 for first time since February
Bitcoin on Thursday hit its highest level since February, climbing back above the key $100,000 level. The price
of the flagship cryptocurrency was last higher by nearly 6% at $101,679.85, according to Coin Metrics. The
move began overnight after President Donald Trump first teased an announcement between the U.S. and the
United Kingdom on trade. Bitcoin continued its climb and touched $100,000 as Trump revealed a broad
outline of the agreement on Thursday morning. Stocks also rallied. “Bitcoin has not only reclaimed $100,000
for the first time in three months but it’s also reaffirmed its status as the ultimate bouncebackability asset as
the prospects for U.S. trade deals brighten,” said Antoni Trenchev, co-founder of crypto exchange Nexo. The
recent market uncertainty has been a boon for bitcoin — and it could continue to lift the flagship crypto with
investors beginning to doubt the safe-haven status of the U.S. Although the Trump administration has walked
back some of its aggressive rhetoric on tariffs, investors are still looking for clarity on what trade policy will be.
“Bitcoin remains buttressed by a pro-crypto Trump administration along with hungry buying from spot-ETF
investors … while its outperformance versus U.S. equity benchmarks in 2025 highlights its resilience and safe
haven status,” Trenchev said. “Expect bitcoin’s resilience to be tested further in an uncertain and volatile global
macro and geopolitical environment,” he added. “Look no further than rising tensions between India and
Pakistan, which risk escalating into a full blown conflict. Meanwhile we have a Federal Reserve in no rush to
cut rates and equally concerned about unemployment and inflation.” - Trump confirms first trade deal with UK, 10% rate will be ’lowest end’
President Donald Trump confirmed a trade deal with the United Kingdom on Thursday. It is the first deal since
reciprocal tariffs were announced on April 2nd. Importantly, the 10% base tariff will remain for the UK,
providing a glimpse of a possible roadmap for future deals. Trump and UK Prime Minister Sir Keir
Starmer confirmed the deal during a phone call broadcast live. Trump highlighted that the new deal will raise
$6 billion in External Revenue from the agreement and $5 billion in new export opportunities. The two sides
also announced the creation of an Aluminum and Steel trading zone and a secure pharmaceutical supply chain.
“Today is an incredible day for America as we deliver our first Fair, Open, and Reciprocal Trade Deal —
Something our past Presidents never cared about,” Trump stated. “Together with our strong Ally, the United
Kingdom, we have reached the first, historic Trade Deal since Liberation Day.” As part of the deal, the UK has
agreed to a $10 billion Boeing procurement deal. Shares of Boeing Co (NYSE:BA) rose 3% intraday. The deal will
provide a 10% tariff on a quota of 100,000 UK auto exports to the U.S. When answering a question, the U.S.
President said there is “a good commercial for Rolls-Royce (OTC:RYCEY).” Rolls-Royce shares closed over 3%
higher in today’s session. U.S. Secretary of Agriculture Brooke Rollins said the deal will “exponentially increase”
U.S. beef exports to the UK. - Bank of England cuts interest rates
The central bank reduced its key interest rate from 4.5% to 4.25% on Thursday amid a backdrop of lackluster
economic growth and uncertainty around President Donald Trump’s trade tariffs. The move is likely to bring
relief to borrowers, businesses and hard-pressed consumers across the country. Five of the BOE’s nine
policymakers voted for the cut, with two members wanting a larger 50 basis-point reduction, and two wanting
to keep rates on hold. - Robert Francis Prevost becomes first U.S.-born pope
The conclave chose American-born Cardinal Robert Francis Prevost to be the next pope. He will be known as
Pope Leo XIV. Leo is the first pope to have been born in the United States. He is also a citizen of Peru, where
he has spent much of his life. He was elected leader of the world’s 1.4 billion Catholics on the second day of
the conclave, by 133 red-robed cardinals who were sequestered in the Sistine Chapel. - The Trade Desk soars 10% on Q1 earnings beat, strong guidance
The Trade Desk (NASDAQ:TTD) saw its shares surge 10% after the advertising technology company reported
first-quarter earnings that exceeded analyst expectations and provided robust guidance for the second quarter.
The company posted adjusted earnings per share of $0.33 for the first quarter of 2025, surpassing the analyst
estimate of $0.25 by $0.08. Revenue for the quarter came in at $616 million, beating the consensus estimate
of $576.07 million and representing a 25% increase YoY. The Trade Desk’s strong performance was driven by
strategic upgrades implemented in the fourth quarter of 2024, which contributed to the company’s
outperformance. CEO Jeff Green expressed optimism about the company’s ability to continue outpacing the
market and deliver increasing value to marketers. Looking ahead, The Trade Desk provided solid guidance for
the second quarter of 2025, projecting revenue of at least $682 million, slightly above the consensus estimate
of $680.7 million. The company also expects adjusted EBITDA of approximately $259 million for Q2. - Mercado Libre builds on 2024 momentum with strong Q1 2025 results, reporting $5.9 billion revenue
and $494 million net income
Mercado Libre (NASDAQ: MELI), the leading e-commerce and fintech platform in Latin America, kicked off the
year with strong momentum, reporting solid results for the first quarter of 2025, boosted by continued
strategic investments and ever improving value proposition. Net revenue and financial income increased 37%
YoY to reach $5.9 billion, while income from operations rose 45% YoY to $763 million. Net income for the
quarter reached $494 million, a 44% YoY increase. Mercado Libre’s commerce business continues to strengthen
as brand preference reached all-time highs in key markets, including Brazil, Mexico, Argentina, and Chile. This
is helping to take share from physical commerce, which still accounts for approximately 85% of retail spend in
Latin America. This quarter, Gross Merchandise Value (GMV), the total value of merchandise sold on the
platform, rose 17% YoY in dollars to reach $13.3 billion, with 40% FX Neutral growth. Unique buyers increased
25% YoY to almost 67 million, sustaining the highest level of new buyer growth since early 2021. Items sold
rose 28% in Q1’25, reaching 492 million units. - Coinbase quarterly profit falls as expenses climb, shares down
Crypto exchange Coinbase (NASDAQ:COIN) reported a drop in first-quarter profit on Thursday as a steep rise
in costs more than offset revenue growth in its transaction and subscription units, sending its shares down 3%
in extended trading. Total operating expenses soared 51% to $1.3 billion in the quarter, driven by increased
marketing expenses as well as losses on crypto assets held for operations, the company said. U.S. President
Donald Trump’s erratic trade policy had triggered volatility across asset classes during the first three months
of the year, rattling financial markets and triggering a sell-off in assets perceived as risky, such as crypto.
However, its transaction revenue rose 17.3% to $1.26 billion. Revenue from the subscription and services unit,
which houses businesses outside of trading, also jumped 37% to $698.1 million. Total revenue rose to $2.03
billion from $1.64 billion a year earlier. That still missed analysts’ expectations of $2.1 billion, according to data
compiled by LSEG. - Shopify second-quarter revenue forecast beats estimates
Shopify (NASDAQ:SHOP) has unveiled second-quarter revenue growth estimates that topped analysts’
estimates, as the e-commerce group pushes to entice sellers to its platform even as it grapples with broader
economic uncertainty. But U.S.-listed shares in the company slumped by more than 8% in premarket U.S.
trading on Thursday following lower-than-anticipated first-quarter profit. Canada-based Shopify said it now
expects revenue to increase in the mid-twenties percentage rate on a year-on-year basis in the current quarter,
compared with Wall Street projections of 22.4%, according to LSEG data cited by Reuters. Sales for the quarter
ended on March 31 rose by 27% to $2.36 billion, thanks to an uptick in gross merchandise value and monthly
recurring revenue. Bloomberg consensus expectations had seen the figure at $2.34 billion. Operating income
also jumped to $203 million, versus projections of $207.6 million. Expenses, particularly in marketing and
research and development, increased, partly offsetting a decline in administrative costs. Group-wide, operating
expenses came in at $966 million, slightly above forecasts of $962.3 million. “Our first-quarter results confirm
two clear facts. First, we are delivering both growth and profitability at scale. Second, businesses perform
better on Shopify, regardless of market conditions,” said Shopify President Harley Finkelstein in a statement.
“We built Shopify for times like these.” As a percentage of revenue, second quarter operating expenses are
tipped to be between 39% to 40%.
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