S&P 500 Futures Slip Ahead of US-China Talks

S&P 500 futures dipped 0.2% on Monday as traders waited for the outcome of US-China trade talks in London, following a recent phone call between Trump and Xi that eased tensions. Asian shares rallied on the back of Friday’s stronger-than-expected US jobs data, while China's deepening producer price deflation signalled further trade-related strain. Elsewhere, US National Guard troops were deployed in Los Angeles amid protests over immigration policy, adding a layer of political risk to markets.

Equities

The FTSE 100 rose 0.3% on Friday, helped by a broad rally in banking shares after US economic data eased concerns about slowing growth. The mid-cap FTSE 250 also gained 0.4%, with both indices registering weekly gains. Among top performers, Standard Chartered rose 2.9%, Barclays climbed 1.9%, and HSBC added 1%. Precious metal miners, which had led the index earlier in the week, fell 1.8% on the day. Aerospace and defence stocks slipped 0.8%, giving up some of their recent gains following Prime Minister Keir Starmer’s pledge to boost defence spending.

Investors are looking ahead to Finance Minister Rachel Reeves’ first multi-year spending review on 11 June, where over £2 trillion in public funds will be allocated across departments. 

In the US, equities climbed after job growth data came in slightly above expectations, easing some economic uncertainty. The S&P 500 rose 1.03% to close just above 6,000 for the first time since February. The Nasdaq gained 1.2% and the Dow added 1.05%. For the week, the S&P 500 rose 1.5%, the Nasdaq 2.18%, and the Dow 1.17%.

Tesla rose 3.8% after falling 15% on Thursday, when Donald Trump threatened to withdraw government contracts from Elon Musk’s companies. Amazon gained 2.7%, while Alphabet rose 3.25%. Wells Fargo climbed 1.9% following an upgrade from S&P Global, which raised its outlook on the bank to “positive” from “stable”, after the Fed lifted a $1.95 trillion asset cap.

Lululemon fell 19.8% after the company cut its annual profit target, citing higher costs linked to Trump’s tariffs. Broadcom dropped 5% as investors reacted to a weaker-than-expected revenue forecast, despite its ongoing AI chip business.

Forex & Commodities

The dollar slipped against all major currencies as attention turned to US-China trade talks taking place in London. The dollar index dipped 0.07% to 99.045, with the greenback falling 0.31% against the yen to 144.43 and 0.27% against the pound, which strengthened to $1.3555. The euro rose 0.18% to $1.1417, supported by last week’s hawkish European Central Bank outlook. The Swiss franc also gained 0.17% to 0.8209 per dollar.

Friday’s stronger-than-expected US non-farm payrolls report helped pare some of last week’s losses in the dollar, but the currency remains down over 8.6% this year. The US added 139,000 jobs in May, with wage growth outpacing forecasts and the unemployment rate holding at 4.2%. 

In Asia, the offshore yuan stood at 7.187 per dollar after China reported its slowest export growth in three months and the steepest factory-gate deflation in two years. Japan’s yen gained after data showed GDP contracted less than expected in Q1. Meanwhile, Japan’s trade negotiator is set for a fresh round of talks in Washington later this week.

Gold edged 0.1% higher to $3,313.54 per ounce, while US gold futures slipped 0.4% to $3,333.80. China’s central bank added to its reserves for a seventh straight month. Spot silver rose 0.2% to $36.03, platinum gained 1.6% to $1,187.80, and palladium eased 0.1% to $1,045.61.

Oil prices held steady after last week’s gains. Brent crude dipped 6 cents to $66.41 a barrel, while WTI fell 4 cents to $64.54. Both benchmarks rose last week—Brent by 4% and WTI by 6.2%—following news of the US-China meeting and strong US fuel demand. China’s crude imports fell to a four-month low in May as refiners carried out maintenance.