US President Trump and Chinese President Xi agreed on Thursday to continue trade talks aimed at resolving disputes over tariffs and supplies of rare earth minerals. They held a 90-minute call yesterday, during which Trump acknowledged that the trade relationship with China is “a little off track,” but added that they are “in very good shape” for a trade deal. The uplift in sentiment was limited, and markets are still searching for clear direction.
White House aides have scheduled a call with Elon Musk today to avoid further escalation of his feud with Trump. Musk has also signaled that he’s open to easing tensions. He confirmed he will not end use of SpaceX’s Dragon spacecraft, which underpins the International Space Station. The breakdown in their relationship followed Trump’s proposal to cut Musk’s government contracts, after Musk repeatedly urged Republicans to vote against the president’s signature tax legislation.
Back in Europe, the ECB cut interest rates by 25 bps, as expected, bringing the benchmark rate down to 2%. The central bank also signaled that it’s approaching the end of its cutting cycle, with a pause now envisaged in July.
All eyes are on US Non-Farm Payrolls this afternoon at 1:30 p.m. (126k est. vs. 177k prior).
