
Wall Street heads for cautious start, dollar eases ahead of US-China talks
Wall Street index futures hovered a touch higher while the dollar pared recent gains at the outset of London talks meant to mend a trade rift between the United States and China.
S&P 500 E-minis were up around 8 points, or 0.1%, while Nasdaq 100 E-minis ticked 14 points higher, to almost 0.1%.
MSCI's broadest index of world shares climbed 0.2%, and earlier hit a record high of 894.13.
Europe's STOXX 600 ticked 0.2% lower, weighed by aerospace and defence-linked sectors.
Top trade representatives from Washington and Beijing are due to meet for talks expected to focus on critical minerals, whose production is dominated by China.
"Trade policy will remain the big macro uncertainty," said Kyle Rodda, a senior financial market analyst at Capital.com. "Signs of further momentum in talks could give the markets fresh boost to kick off the week."
U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer will represent Washington in talks with China, U.S. President Donald Trump said in a social media post.
China's foreign ministry said Vice Premier He Lifeng will be in Britain for the first meeting of the China-U.S. economic and trade consultation mechanism.
Wall Street stocks closed sharply higher on Friday after the closely watched monthly U.S. jobs data eased concerns about damage to the world's biggest economy from Trump's unpredictable tariff regime.
Sentiment was weighed down by a standoff in Los Angeles that led to Trump calling in the California National Guard to quell demonstrations over his immigration policies.
The dollar fell 0.4% against the yen to 144.315, trimming its 0.9% jump on Friday. The European single currency rose about 0.2% to $1.1415. Sterling rose against the dollar 0.4% to $1.3595.
CHINA EXPORT GROWTH SLOWS
U.S. job growth slowed in May by less than forecast, data showed on Friday. But dour economic readings from China added to evidence the trade war is taking a toll.
China's export growth slowed to a three-month low in May, while factory-gate deflation deepened to its worst level in two years, separate reports showed on Monday.
Tariff negotiation hopes dispelled dour economic data and Asian markets closed higher.
The Japanese Nikkei closed almost 1% higher, China's blue-chip CSI300 Index climbed roughly 0.3%, while the Shanghai Composite Index gained 0.4%.
Japan is considering buying back some super-long government bonds issued in the past at low interest rates, two sources with direct knowledge of the plan said on Monday.
Attention now turns to U.S. inflation data on Wednesday that may adjust expectations for the timing of any rate cuts by the Federal Reserve. The Fed is in a blackout period ahead of its June 18 policy decision.
"Beneath the surface, fragilities are building," said Bruno Schneller, managing director at Erlen Capital Management, noting that the U.S. CPI release is expected to show another rise, signaling that inflation remains sticky.
"While this may offer some near-term support for the U.S. dollar, broader macro dynamics – notably fiscal expansion, rising structural deficits, and political unpredictability – are increasingly clouding the outlook for both rates and currencies," he said.
Gold rose around 0.25% to $3,318 per ounce after a 1.3% fall on Friday. Brent crude recovered earlier losses to climb 20 cents to $66.67 while U.S. WTI crude rose 19 cents to $64.67 a barrel following a 1.9% surge late last week.
(Reporting by Nell Mackenzie in London and Rocky Swift in Tokyo; Editing by Dhara Ranasinghe and Bernadette Baum)
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Khaleej Times
an hour ago
- Khaleej Times
Gold demand to hit new highs as central banks pivot away from dollar holdings
Central banks are diving headfirst into gold, driving demand to unprecedented heights as they pivot away from the US dollar in a bold de-dollarisation push. This strategic scramble for the yellow metal, fuelled by geopolitical tensions, economic uncertainty, and dwindling trust in traditional safe-haven assets, is set to propel gold demand to record levels in 2025, with prices soaring to new peaks. The current gold-buying spree is not happening in a vacuum. It coincides with a dramatic surge in gold prices, which have already risen 29 per cent year-to-date, hitting an all-time high of $3,500 per troy ounce in April. Despite the price rally, demand from central banks has remained resilient. Economists and precious metals analysts argue that the global gold rush — led by the very institutions that once anchored their wealth in dollars — reveals a profound transformation in the architecture of international finance. Metals Focus, a leading consultancy, reported that first-quarter buying in 2025 was in line with the 2022–2024 quarterly average, underscoring persistent demand even at elevated price points. The consultancy projects in its annual gold market outlook that central banks will snap up 1,000 metric tons of gold in 2025, marking the fourth consecutive year of robust official sector buying. While this forecast reflects an 8.0 per cent dip from the record 1,086 tonnes purchased in 2024, demand remains historically elevated, underscoring gold's enduring appeal as a politically neutral, non-liability-bearing reserve asset. Poland, Azerbaijan, and China lead the charge, with consistent inflows also noted into Iran, signaling sustained activity by the Central Bank of Iran. Metals Focus projects an average gold price of $3,210 per ounce in 2025 — a 35 per cent jump — fuelled by ongoing uncertainty and eroding confidence in the US dollar and Treasuries. The People's Bank of China has been a key player, boosting its gold reserves for the seventh straight month in May, adding 60,000 troy ounces to bring its total to 73.83 million fine troy ounces, according to recent data. This move reflects China's determined push to diversify holdings amid price fluctuations. Globally, sovereign players are acquiring roughly 80 metric tons of gold monthly, worth about $8.5 billion at current prices, analysts at Goldman Sachs Group Inc estimate. China's foreign-exchange reserves also edged up to $3.285 trillion in May from $3.282 trillion in April, signaling a broader strategy to bolster financial resilience. 'The drivers that have underpinned de-dollarisation in recent years remain firmly in place,' Metals Focus stated. President Trump's unpredictable policy stance, his public criticism of Federal Reserve Chair Jerome Powell, and the deteriorating US fiscal outlook have deepened doubts about the dollar and Treasuries as ultimate safe-haven assets. Elevated geopolitical tensions since the start of his administration have further dimmed the appeal of US assets, pushing central banks toward gold as a reliable hedge. This trend dovetails with broader concerns about the US dollar's waning global dominance. JPMorgan CEO Jamie Dimon and Tesla CEO Elon Musk have sounded alarms over fiscal instability and geopolitical risks, while Coinbase CEO Brian Armstrong has boldly suggested bitcoin could one day supplant the dollar as the global reserve currency. Meanwhile, alliances like Brics and the Shanghai Cooperation Organisation are accelerating de-dollarisation, increasingly conducting trade in national currencies to reduce reliance on the US dollar. Gold's allure extends beyond central banks. Investors, rattled by trade wars and uncertainty surrounding US assets, have flocked to the metal as a haven, propelling prices to near-historic highs. Though the rally cooled slightly with easing global trade tensions, bullion remains a cornerstone of stability in turbulent times. The World Gold Council notes that global gold demand, including jewelry, investment, and industrial uses, reached 4,899 tons in 2024, a record, and 2025 is poised to surpass this as central bank purchases sustain momentum. Exchange-traded funds backed by gold have also seen inflows, with holdings rising 5 per cent year-to-date to 3,200 tons, reflecting investor appetite. Looking ahead, the demand outlook remains robust. Metals Focus highlights that economic uncertainty, coupled with central banks' strategic shift, will keep gold in high demand. Emerging markets, wary of currency volatility and sanctions risks, are stockpiling gold to safeguard reserves. The International Monetary Fund reports that gold's share of global reserves climbed to 15 per cent in 2024, the highest in decades, and this trend is expected to persist. Analysts predict that if de-dollarisation accelerates, annual central bank demand could stabilise above 900 tons for the next five years, reinforcing gold's role as a cornerstone asset. They argue that central banks' relentless buying, paired with investor flight to safety, is rewriting the rules of global finance, positioning the yellow metal as the ultimate bulwark against uncertainty.


Khaleej Times
an hour ago
- Khaleej Times
Saudi crude oil supply to China to dip in July, sources say
Saudi Arabia's crude oil supply to China is set to dip slightly in July, trade sources said on Tuesday, but still strong for a third straight month as the OPEC leader regains its market share supplying the world's top crude importer. State oil firm Saudi Aramco will ship about 47 million barrels to China in July, a tally of allocations to Chinese refiners showed, 1 million barrels less than June's allotted volume. State refiners Sinopec, PetroChina and Aramco's joint venture Fujian refinery will be receiving more crude in July, while the allocation for independent refiners Rongsheng Petrochemical, Hengli Petrochemical and Shenghong Petrochemical will dip, the sources said. Saudi Aramco did not immediately respond to a request for comment. The robust Saudi supply comes after the Organization of the Petroleum Exporting Countries and their allies, known as OPEC+, agreed to hike output in July by 411,000 barrels per day for a third consecutive month. Since April, the OPEC+ eight have now made or announced increases totalling 1.37 million bpd, or 62% of the 2.2 million bpd they aim to add back to the market.


The National
2 hours ago
- The National
UAE ranks first for AI maturity in Arab world, report says
The UAE ranks first in the Arab world in a new AI Maturity Index that examines country readiness for artificial intelligence, according to a new report from online learning platform Coursera. The 2025 Global Skills Report said the country's recent announcement of a UAE-US 5GW AI Campus - unveiled during US President Donald Trump's visit in May, along with the decision by UAE schools to begin teaching mandatory AI classes from age four - helped propel it to to the top in various areas of the report. 'The UAE is rapidly scaling AI learning and infrastructure to drive workforce transformation and regional innovation,' said Kais Zribi, Coursera's manager for Middle East and North Africa. 'Its strong performance on Coursera 's AI Maturity Index, combined with high rankings in overall skills proficiency, demonstrates the country's growing ability to close skill gaps, nurture future talent, and lead in AI readiness.' For AI maturity globally, the UAE ranked 32nd out of 109 countries, according to Coursera. Saudi Arabia ranked 37th place and Qatar placed 45th. Singapore, Denmark, Switzerland, the US and Finland ranked in the top five. In terms of overall AI skills proficiency, the UAE also ranked top in the Arab world. Coursera's report also said that with a 344 per cent increase in AI course enrolment compared to last year, the UAE outpaced the Middle East and North Africa regional average, as well as the global average AI courses selected on the company's learning platform. 'As digital transformation reshapes industries, the UAE is setting a powerful example of how nations can leverage education to build a competitive, inclusive digital economy that prepares its workforce for the future,' said Mr Zribi. Towards the end of last year, a similar report from Coursera projected that UAE interest in AI courses was on the path to grow significantly. Coursera's data for its 2025 Global Skills Report is based in part on the company's stats from its learning platform, along with 'third-party metrics to ensure a more comprehensive assessment, complementing the insights provided by Coursera data'. For the AI Maturity Index, data from the International Monetary Fund (IMF) and the Organisation for Economic Co-operation and Development (OECD) is used as well. Over the past decade, the UAE − the Arab world's second largest economy − has been open about its desire to be an AI front-runner as it diversifies its economy away from oil. The country's efforts have resulted in the establishment of start-ups as well as partnerships and investments from industry leaders like Microsoft, Nvidia and OpenAI. Through the creation of language models such as Falcon Arabic, the UAE has also sought to ensure aspects of Arabic culture are not left behind by the AI surge, with many large language models based on English-language data. AI Minister, Omar Al Olama.