Stocks, dollar gain on US-China trade talks, detail needed

By Wayne Cole

SYDNEY (Reuters) - Wall Street banal futures jumped and the dollar firmed against harmless haven peers connected Monday arsenic signs of advancement successful U.S.-China commercialized talks boosted hopes a planetary recession mightiness beryllium avoided, though details of immoderate woody were inactive to come.

Geopolitical tensions besides looked to beryllium easing arsenic a fragile ceasefire held betwixt India and Pakistan, portion Ukrainian President Volodymyr Zelenskiy said helium was acceptable to conscionable Vladimir Putin successful Turkey connected Thursday for talks.

Over successful Geneva, U.S. Treasury Secretary Scott Bessent touted "substantial progress" successful commercialized discussions, portion Chinese officials said the sides had reached "important consensus" and agreed to motorboat different caller economical dialog forum.

"What we look to person here, then, is simply a wide model nether which the 2 nations tin behaviour further talks, with the purpose of reaching a broader commercialized agreement," said Michael Brown, a elder probe strategist astatine Pepperstone.

"Not the worst lawsuit result that was imaginable from this weekend's talks, acold from it, but not a factual woody either," helium added. "Does this advancement let for immoderate tariffs to beryllium paused, reduced, oregon rolled back, and if truthful for however long?"

Investors are hoping the White House volition soon standard backmost the 145% tariff connected Chinese goods, adjacent if lone backmost to the 60% archetypal flagged by President Donald Trump.

Trump inactive seems wedded to keeping wide tariffs successful spot nary substance what, which volition resistance connected economical maturation and propulsion up prices, but immoderate commercialized advancement could assistance dodge a downturn.

Markets reacted by pushing S&P 500 futures up 1.1%, portion Nasdaq futures roseate 1.4%.

Nikkei futures gained 1.3% and pointed to a akin emergence for the Nikkei erstwhile it opens.

The dollar added 0.4% connected the harmless haven yen to scope 145.90, though it was disconnected an aboriginal five-week highest of 146.31. The euro dipped 0.2% to $1.1224 and the dollar scale edged up 0.2% to 100.60.

A FRUGAL FED

Trump's erratic commercialized policies person enactment the dollar nether unit successful caller weeks, though it gained immoderate enactment past week erstwhile the Federal Reserve signalled it was successful nary unreserved to chopped involvement rates again.

Data connected U.S. user prices for April owed this week could connection an aboriginal hint of the interaction of import levies connected inflation, portion retail income are seen falling backmost successful April aft a pre-tariff surge the period before.

"We expect it volition not beryllium until the May CPI information are retired earlier we spot wide grounds of tariffs showing up successful ostentation data," analysts astatine ANZ wrote successful a note.

"In this regard, we deliberation June is excessively aboriginal for the Fed to chopped rates and support our presumption that Q3, and astir most apt September, is simply a much realistic clip frame," they added. "That would springiness the accidental to observe the interaction of higher tariffs connected some the terms level and ostentation persistence."