Wonderful introduction:
Life needs a smile. When you meet friends and relatives, you can give them a smile, which can inspire people's hearts and enhance friendship. When you receive help from strangers, you will feel hejiba.cnfortable with both parties; if you give yourself a smile, life will be better!
Hello everyone, today XM Foreign Exchange will bring you "[XM Foreign Exchange Market Review]: Oversupply concerns limit oil prices to rise, risk sentiment improves, gold prices fell for the second consecutive trading day, and progress made in the US-Iran talks." Hope it will be helpful to you! The original content is as follows:
On Wednesday (May 28, Beijing time), spot gold trading was around 3303.93, gold prices fell for the second consecutive trading day on Tuesday. After US President Trump decided to postpone the imposition of tariffs on the EU, risk sentiment improved; US crude oil trading was $61.12 per barrel, and oil prices closed down 1% on Tuesday, as Iran and the US delegation made progress in talks and expected OPEC+ to increase production at this week's meeting, investors were worried about oversupply.
U.S. stocks closed sharply higher on Tuesday, as U.S. President Trump's latest tariff easing move and unexpected jump in consumer confidence boosted investors' risk appetite. The market generally rose, and all three major stock indexes rose sharply. The "Seven Technology Heroes" related to artificial intelligence (AI) have a strong momentum, pushing the Nasdaq Index, a major technology stock market, outperformed.
The S&P 500 is currently only 3.6% away from its closing record high set on February 19, and the index fell 18.9% from its record high after Trump announced tariff measures.
Paul Nolte, senior wealth consultant and market strategist at Murphy and Sylvest, said that when (Trump) fired the cannon on April 2, the market thought the end of the world was hejiba.cning, and the sell-off was so strong and rapid that you would expect some kind of rebound, and the rebound was so drastically and rapidly that you expected some kind of pullback. Investors will digest and ask themselves what the situation is.
In the latest action, Trump gave up on the EUThe threat of 50% tariffs will be postponed to July 9 for the White House to negotiate with the EU. The move has prepared Brussels for trade negotiations.
Nolte added, "He's like playing cards, you know he's betting, but under the pressure of other players on the table, he gave up."
Economic, the consumer confidence index surged 14.4% in May, adding momentum to the rise and helping investors look down on data showing a sharp drop in core capital orders, which is seen as a barometer of U.S. corporate spending plans.
Richmond Fed Chairman Barkin told Bloomberg News that the data has not yet shown the economy to move towards a rising inflation or an increase in unemployment. This is consistent with the views of many Fed officials who expect key interest rates to remain the same until the full impact of Trump tariffs is clear. The minutes of the Fed's latest monetary policy meeting will be released on Wednesday.
U.S. long-term bond yields declined, and the 30-year bond yields will hit the biggest single-day decline since late April, following the trend of sharp rise in Japan's long-term bond prices.
The Dow Jones Industrial Average rose 1.78% to 42343.65 points; the S&P 500 rose 2.05% to 5921.54 points; and the Nasdaq rose 2.47% to 9.16 points.
The 11 major sectors of the S&P 500 index rose, with consumer discretionary sectors and technology sectors leading the gains. Airline stocks and technology-related large growth stocks outperformed significantly.
Semiconductor stocks also performed well. Chip maker Nvidia will release its quarterly results report on Wednesday, with earnings per share expected to grow 43.5% year-on-year and revenue will increase by 66.2%.
Pinduoduo fell 13.6%. After three quarters of slowdown, its quarterly adjusted hejiba.cn profit growth finally showed a rare negative growth in the first quarter of this year, nearly "halved" year-on-year, and its revenue in the same period was also inferior to expectations.
Gold prices fell for the second consecutive trading day on Tuesday, and risk sentiment improved after U.S. President Trump decided to postpone the imposition of tariffs on the EU. Spot gold fell 1.2% to $3,302.10 an ounce, up nearly 5% last week. US gold futures closed down 1.9% and settled at $3,300.40.
Bart Melek, head of hejiba.cnmodity strategy at TD Securities, said: "Gold prices fluctuate greatly due to changing tariff situations. At present, the market may think that an agreement will be reached, which puts pressure on gold."
Trump abandoned the threat of imposing a 50% tariff on imported goods from the EU next month. The EU said Trump's weekend call with EU hejiba.cnmission President von der Leyen provided "new impetus" for trade dialogue.
The US dollar strengthened, and stock index futures rose sharply. The strengthening of the dollar and rising risk sentiment often put pressure on gold. Gold is denominated in US dollars and is often favored during times of economic and geopolitical uncertainty.
Minneapolis Fed ChairmanKashkali called for interest rates to remain stable until the impact of high tariffs on inflation becomes clearer.
The minutes of the Fed's latest policy meeting will be released on Wednesday. The main U.S. economic data to be released this week include the first-quarter gross domestic product (GDP), the number of weekly unemployment benefits and the core personal consumption expenditure (PCE) price index.
Spot silver fell 0.4% to $33.21 per ounce; platinum fell 0.1% to $1,084.02; palladium fell 1.2% to $975.49. Oil market
Oil prices closed down 1% on Tuesday as Iran and the U.S. delegations made progress in talks and expected OPEC+ to increase production at this week's meeting, with investors worried about oversupply.
Brent crude oil futures closed down 1% at $64.09 per barrel; U.S. crude oil fell 1.04% at $60.89 per barrel.
OPEC+, which consists of the Organization of Petroleum Exporting Countries and its allies, is not expected to change its policy at its meeting on Wednesday. But three OPEC+ representatives told Reuters that OPEC+ may agree to further increase production this week, the latest phase of plans to meet growing demand and increase market share.
At the same time, Iranian and U.S. delegations ended their fifth round of talks in Rome last week. Despite signs of limited progress, there are still many difficult differences, especially Iran's uranium enrichment problem.
If nuclear negotiations between the United States and Iran fail, this could mean that Iran will continue to be sanctioned, which will limit Iran's oil supply, and any solution could increase Iran's market supply.
In addition, in terms of supply, Reuters' preliminary survey on Tuesday showed that U.S. crude oil inventories could increase by about 500,000 barrels last week.
The dollar strengthened on Tuesday, helping improve U.S. consumer confidence, and the yen was under pressure as Japan's long-term government bond yields plummeted. This is largely driven by global bond markets and the recent trends in Japan’s bond markets, with market participants interpreting the bond issuance questionnaire issued by the Japanese Ministry of Finance to its primary traders, said Eric Theoret, a foreign exchange strategist at Scotiabank in Toronto.
Bloomberg reported on Tuesday that the Japanese Ministry of Finance has sent market participants a questionnaire on bond issuance and current market issues. Japan will consider cutting the issuance of ultra-long-term bonds in light of recent sharp rises in ultra-long-term bond yields, two sources told Reuters on Tuesday.
The plan is backed by the recent surge in record-breaking levels of Japanese ultra-long-term bond yields as demand for traditional buyers such as life insurance hejiba.cnpanies and the global market is uneasy about the steady rise in Japanese government debt levels.
The US dollar rose 1% against the yen to 144.28 yen. The euro fell 0.46% to US$1.1335Yuan. Data shows that US consumer confidence in May was much better than economists' expectations, and the dollar rose further.
The data released this week will include the April Personal Consumption Expenditure (PCE) price index released on Friday, an inflation indicator that the Federal Reserve has prioritized.
Minneapolis Fed Chairman Neel Kashkari called for the unchanged interest rates Tuesday until the situation of how tariff hikes affect inflation is clearer, and warned against "ignoring" the impact of such supply-side price shocks.
Meanwhile, data showed that French inflation fell to its lowest level since December 2020 in May, which suppressed the euro.
U.S. President Trump on Sunday abandoned the threat of imposing 50% tariffs on EU imported products from next month, boosting risk appetite on Tuesday.
EU policymakers have asked major EU hejiba.cnpanies and CEOs to quickly provide details of their investment plans in the U.S., and Brussels is preparing for trade talks with Washington, according to two people familiar with the matter.
Investors are worried that tariffs will hurt growth and may lead to a rise in inflation again, but traders’ pessimism about the U.S. economic outlook has weakened since tariffs eased earlier this month. In the long run, the US protectionist stance is expected to continue to damage the US dollar. "We are still in a medium- and long-term weak US dollar," Theoret said.
ECB Chairman Lagarde said on Monday that if member governments can strengthen the financial and security structure of the euro zone, the euro may become a viable alternative to the dollar.
Investors are also watching a spending and tax bill passed by the U.S. Congress that is expected to cause trillions of dollars in U.S. government debt. Chris Low, chief economist at FHNFinancial, said in a note: "Our first impression of the House Budget is that it's not bad, but there is room for improvement. It will reduce the deficit-to-GDP ratio, but may not be enough to take the budget on a sustainable path." However, Low noted that "no one is satisfied with the bill", with right-wing hejiba.cnmentators displeased that the bill did not further cut the Department of Government Efficiency (DOGE) spending, while left-wing hejiba.cnmentators were primarily opposed to the scale of social spending cuts.
U.S. Senate Republicans said Thursday that they will seek substantial changes to the spending bill after the bill was approved by a narrow margin in the House. The US dollar rose 0.77% to 0.827 Swiss francs.
Swiss National Bank Governor Martin Schlegel said on Tuesday that Swiss inflation may enter a negative zone in the hejiba.cning months, but that may not necessarily trigger a response from the Swiss National Bank.
Trump in TruthSocial said Canada wants to join our very brilliant Golden Dome defense system, and I told Canada that if they continue to be an independent but unequal country, it would cost $61 billion, but if they become our beloved 51 state, it would not cost a penny. They are considering this proposal!
On Tuesday local time, Florida Governor Ron DeSantis signed legislation recognizing gold and silver as fiat currencies in the state, which he said was to protect Floridians from the depreciation of the dollar. The legislation establishes a legal framework that recognizes certain gold and silver coins as Florida’s fiat currency, exempts sales taxes, regulates their custodians, and allows the arbitrary use of gold and silver coins in transactions (requires approval of the implementation rules by the legislature). DeSantis said the bill authorizes check cashing or payment agencies such as PayPal and accept payments from gold and silver. DeSantis noted that "this means that these precious metals can once again start to function like real currencies, not just investment vehicles for the rich." DeSantis also criticized the spending behavior of the U.S. federal government, likening the dilemma of "DOGE and Musk" to "fighting the swamp." DeSantis said, "It was the end of May, and Congress did not implement a penny DOGE (budget) reduction! DOGE fought against the swamp, and so far, the swamp won."
South African President Ramaphosa recently said that US President Trump agreed to the US to attend the G20 leaders' summit held in South Africa in November this year. Ramaphosa paid a working visit to the United States from the 19th to the 22nd of this month and held talks with Trump at the White House on the 21st. In a weekly routine briefing on the 26th, Trump agreed that the U.S. will continue to play an important role in the G20, including the U.S. attending the G20 Leaders' Summit in Johannesburg, South Africa later this year, when South Africa will hand over the G20 presidency to the U.S.
The US government is expected to obtain a "gold stock" right from US steel hejiba.cnpanies, which is one of the conditions for the authorities to approve Japanese iron-making to acquire the steel hejiba.cnpany. The arrangement would give the U.S. government a factual veto on hejiba.cnpany-specific decisions, according to people familiar with the matter. Last Friday, Trump announced a "cooperation relationship" between Japan's iron and US steel, including $14 billion in new investment in the United States. It is still unclear the specific scope of the veto, nor is it clear whether the government has made a decision on the $14.1 billion acquisition deal. The deal submitted to the US Council on Foreign Investment (CFIUS) and the president include an original all-cash acquisition price of $55 per share, as well as an additional $14 billion investment, two people familiar with the matter said.
Mexico Economic Minister Marcelo Ebrard said on Tuesday that Mexico is expected to officially start a planned review of the trilateral trade agreement with the United States and Canada in the early fourth quarter of this year. The US-Mexico-Canada Trade Agreement (USMCA) was negotiated during the first term of U.S. President Trump, replacing the North American Free Trade Agreement (NAFTA) in 2020, requiring the three countries to conduct a joint review six years later. Ebrard had previously said he expected the review to begin in the second half of this year, ahead of schedule. Trump has been pushing for early renegotiation of the agreement and demanding better terms of trade with all of his business partners.
According to the Islamic Republic of Iran's news agency on the 27th, Iran's Foreign Ministry spokesman Bagae said a few days ago that Iran will not give up its uranium enrichment rights under any circumstances. According to reports, Bagae said in an interview with hejiba.cnN in Tehran, the capital of Iran on the 26th that if the United States’ goal is to ensure that Iran’s nuclear program will not be weaponized, it will be easy to reach an agreement between Iran and the United States. But if the United States intends to deprive Iran of its right to use nuclear energy peacefully, the talks "will be very problematic and could seriously endanger the entire negotiation process." He reiterated that Iran's nuclear program is hejiba.cnpletely peaceful and Iran is hejiba.cnmitted to maintaining this nature.
According to multiple American media reports, the Trump administration sent letters to various federal agencies on the 27th, demanding that all remaining federal contracts with Harvard University be terminated, with a total amount of approximately US$100 million. The New York Times reported, citing anonymous government officials that the letter was sent by the U.S. General Services Administration and was served to federal agencies on the same day. The letter is the latest move by the Trump administration to suppress the university with the greatest cultural influence in the United States by weakening Harvard's financial situation and global influence. According to a copy of the letter obtained, the document requires federal agencies to submit a list of contracts to the General Services Administration that have terminated their cooperation with Harvard University by June 6.
On May 27, local time, according to the US political news website "Politico", the US Trump administration is considering requiring all foreign students applying to study in the United States to undergo social media censorship. The telegram signed by U.S. Secretary of State Rubio on the 27th said that in preparation for the implementation of this review requirement, the Trump administration has ordered U.S. embassies and consulates to stop arranging new interviews for applicants for such student visas.
The U.S. Treasury cuts the scale of four-week and eight-cycle Treasury bond auctions, which may be a series of cuts taken by the government to maintain borrowing authority under the statutory debt ceiling.end. On Tuesday (May 27), the U.S. Treasury Department said it plans to issue $75 billion in four-cycle Treasury bonds on Thursday, a decrease of $10 billion from the last time the issuance of Treasury bonds for the same period. In addition, the Ministry of Finance will issue US$65 billion in eight-cycle Treasury bonds, a decrease of US$10 billion from the last auction. The Ministry of Finance kept the scale of the 17-cycle Treasury bonds issued on Wednesday unchanged, still at $60 billion.
U.S. consumer confidence rebounded sharply in May from its lowest point in the past five years, as public perceptions of the outlook for the economy and job market after the temporary truce of tariffs have improved. Data released by the World Federation of Large Enterprises on Tuesday showed that the consumer confidence index rose 12.3 points to 98, the largest single-month increase in four years. Economists surveyed by Bloomberg had previously expected a median estimate of 87.1. Data released on Tuesday showed that the expected indicators reflecting consumers' outlook for the next six months recorded the largest increase since 2011, and the current indicators also rebounded simultaneously. This confidence improvement is reflected in all age groups, income classes and political groups, with Republicans being the most obvious.
As the temperatures in various places continue to rise, popular destinations for the Dragon Boat Festival holiday have shifted from the south to northern cities. Data shows that as of May 25, the number of domestic air ticket bookings for the Dragon Boat Festival holiday exceeded 1.9 million, a slight increase over the same period last year. The average price of domestic air tickets (excluding tax) is about 760 yuan. Driven by the dual driving of Northwest summer vacation and Silk Road cultural tour, the Northwest Tourism Market this year was launched in advance during the Dragon Boat Festival holiday, and passengers traveling to Xinjiang, Gansu and other places booked air tickets nearly a month earlier than in previous years.
On May 27, my country's first fixed offshore photovoltaic project based on pile foundation, China General Nuclear Corporation's Zhaoyuan 400 MW offshore photovoltaic project, was put into operation at full capacity. The project is located in the Laizhou Bay waters of Zhaoyuan City, Shandong Province, with a total sea area of 512.7 hectares. The project started construction on December 26, 2023, overcoming a series of construction difficulties such as high salt spray, high humidity, high wind load, and high current impact in the marine environment. After the full capacity of the project is connected to the grid, the annual power generation can reach nearly 700 million kilowatt-hours, which is equivalent to reducing standard coal consumption by about 208,700 tons and reducing carbon dioxide emissions by about 535,800 tons. It can meet the annual electricity consumption of about 400,000 households and provide a continuous stream of green power for economic and social development.
The above content is all about "[XM Foreign Exchange Market Review]: Oversupply concerns limit oil price increases, risk sentiment improves, gold prices fell for the second consecutive trading day, and progress made in the US-Iran talks". It is carefully hejiba.cnpiled and edited by the editor of XM Foreign Exchange. I hope it will be helpful to your trading! Thanks for the support!
Only the strong know how to fight; the weak are not qualified to fail, but are born to be conquered. Step up to learn the next article!