Headlines:

• China president Xi says mutual respect is key to stable US-China ties
• China purchases of soybeans are all taken care of, says Bessent
• Trump and Xi had a good meeting, says White House official
• USD/JPY flirts with a key upside breakout as yen’s intervention-led gains continue to fade
• Nasdaq analysis today after Trump and Xi met
• ECB’s Kazaks: Preserving anchored inflation expectations is the priority for ECB policy
• BOJ policymaker Masu warns that yen depreciation may raise inflation expectations
• Spain inflation eases a little in April but still much higher than before US-Iran conflict
• UK Q1 preliminary GDP +0.6% vs +0.6% q/q expected
• China new bank loans disappoint in April as sluggish start to the year continues

Markets:

• S&P 500 futures up 0.3% on the day
• WTI crude down 0.2% to $100.80 as Middle East conflict continues to brew
• European stocks higher, DAX up by 1.3% in holiday-thin trading
• Major currencies subdued, US dollar lightly changed across the board
• US 10-year yields down 3.8 bps to 4.44%
• Gold up 0.3% to $4,703 while silver is down 1.1% to $86.98
• Bitcoin down 0.4% to $79,328

The focus and attention in markets has moved further east today, with all eyes on US president Trump’s visit to Beijing. He met with China president Xi Jinping as the two leaders sat down to talk about a host of issues but mainly on trade and maintaining cordial relations amid a time of global economic turbulence.

It is all mostly for show, even if there will be some deals to be struck – likely on agriculture and perhaps Boeing airplanes. Besides that, we should see some opening up in terms of business deals such as on AI and microchips, as well as investment outlays.

But all in all, the whole point of this is to give some reassurance that the two major powers are no longer locking horns – for now at least – after the tariffs war last year.

Still, one can easily dissect the different narratives put out by each side following the meeting.

The US communique focused more on trade issues and working on business/investment ties. Meanwhile, China mostly stuck to talking about a more stable relationship while warning the US that there could be conflict if Washington mishandles the situation in Taiwan. On the latter, China president Xi labeled that as “the most critical issue” involving bilateral ties currently.

As markets digested the meeting, we’re seeing a steadier mood hold for the most part. European stocks are sitting higher despite a working holiday in the likes of Germany and France. The DAX is up 1.3% and CAC 40 up 0.8% on the day. Meanwhile, US futures are also looking upbeat with S&P 500 futures up 0.3% currently.

Oil prices were not up to much and are keeping just a little lower on the day, as US-Iran tensions continue to simmer in the background. WTI crude is down 0.2% to $100.80 with little fresh developments to work with.

In the major currencies space, there wasn’t much to talk about with it being a rather subdued day. The dollar is little changed across the board with no key drivers to move the needle today.

As for precious metals, we’re seeing a slightly more mixed picture with gold up 0.3% to $4,703 and silver down 1.1% to $86.98. There’s not a whole lot in it as markets will look to start positioning ahead of the weekend soon enough.

This article was written by Justin Low at investinglive.com.