The US stocks rose on Friday. This was helped by a stronger-than-expected employment report and renewed optimism about trade negotiations between the US and China. At the end of Friday, the Dow Jones Index (US30) rose by 1.05% (+1.30% for the week). The S&P 500 (US500) rose by 1.30% (+1.76% for the week). The Nasdaq (US100) technology Index closed higher by 0.99% (+2.31% for the week). The labor market added 139,000 jobs in May, exceeding forecasts and easing concerns about an imminent slowdown in growth. Meanwhile, Trump offered a glimmer of optimism on the trade front, announcing that US-China talks would resume next week in London. Nevertheless, President Donald Trump called on Fed Chairman Powell to cut interest rates by a full percentage point, calling it “rocket fuel” for the economy.

In May, only 8,800 jobs were added to the Canadian labor market, and the unemployment rate rose to 7%, the highest since late 2021, indicating that manufacturers are beginning to feel the impact of US tariffs on aluminum, steel, and automobiles. This tension in the labor market contrasts sharply with earlier signs of resilience, such as 2.2% GDP growth in the first quarter and a steady increase in retail sales, which prompted the Bank of Canada to keep its benchmark rate at 2.75% with no signs of an imminent cut.

European stock markets were mostly up on Friday. The German DAX (DE40) fell by 0.08% (+1.84% for the week), while the French CAC 40 (FR40) closed up 0.19% (+1.17% for the week), the Spanish IBEX35 (ES35) rose by 0.31% (+0.97% for the week), and the British FTSE 100 (UK100) closed 0.30% (+0.75% for the week). In Europe, the ECB cut rates as expected, but President Christine Lagarde signaled that the easing cycle may be nearing its end. Meanwhile, disappointing data on exports and industrial production from Germany weighed on sentiment.

WTI oil prices rose 1.9% to $64.60 per barrel on Friday, rising more than 6.5% for the first time in three weeks. The rally was fueled by renewed optimism after the resumption of trade talks between US President Donald Trump and Chinese President Xi Jinping, which raised hopes for stronger global demand. Sentiment also improved after news that Canada had also entered into direct trade talks with the US.

Asian markets rose last week. Japan’s Nikkei 225 (JP225) rose by 0.24%, China’s FTSE China A50 (CHA50) added 0.17%, Hong Kong’s Hang Seng (HK50) increased by 3.25%, and Australia’s ASX 200 (AU200) showed a positive result of 0.96% over the past week.

China’s trade surplus rose sharply to US$103.22 billion in May 2025, compared to US$81.74 billion in the same period a year earlier, exceeding market expectations of US$101.3 billion, as exports rose and imports fell more than expected. Exports rose 4.8% year-on-year to US$316.1 billion, slightly below market expectations of 5.0%, and down sharply from the 8. Meanwhile, imports fell to 3.4% y/y to US$212.9 billion, which was stronger than the expected decline of 0.9%, following a decline in April. Meanwhile, imports fell 3.4% y/y to US$212.9 billion, which was stronger than the expected decline of 0.9%, following a 0.2% decline in April.

The Australian dollar rose to $0.651 on Monday, continuing its rise from the previous week amid optimism about trade talks between the US and China. The talks come at a critical time for both economies, as China struggles with deflation and ongoing trade uncertainty continues to dampen business and consumer confidence in the US. In Australia, a leading economist called on the central bank to make a bold 35 basis point interest rate cut at its July meeting, exceeding the standard 25 basis point cut made in February and May. This recommendation came amid sluggish economic growth and low consumer spending, which are hindering a more robust recovery in the private sector.

Japan’s service sector business activity index rose to 44.4 in May 2025 from 42.6 in the previous month, exceeding market expectations of 43.9. Despite the increase, the overall decline has continued for the fifth consecutive month. The corporate trends index also declined, driven by weakness in the manufacturing sector. Meanwhile, the economic outlook index rose to 44.8 in May from 42.7 in April, supported by expectations of summer bonuses and wage increases.