Looking to build on recent strength

Last week ended on an upbeat note with the market receiving a solid Employment Situation report for May. The tone this morning is a lot more subdued with equity futures pointing toward a modestly higher start after a night that saw gains across Asia and modest losses in European equities.

Overnight trade brought some noteworthy data with Japan narrowly avoiding a contractionary reading of Q1 GDP (0.0%) and China reporting deflationary readings of CPI (-0.2%) and PPI (-0.1%) for May, alongside a trade balance report that showed a 34.4% drop in exports to the U.S.

The market will not receive any top-tier data from the U.S. today, but participants will be curious to hear updates from London, where trade representatives from U.S. and China are meeting. NEC Director Hassett attempted to temper expectations this morning, saying that he does not expect a long meeting, but he does expect a handshake agreement on rare earth elements. The Wall Street Journal, meanwhile, reported that today’s talks will focus on export controls.

Also in London, chip leader NVIDIA (NVDA 143.43, +1.71, +1.2%) is appearing at London Tech Week, and CEO Huang delivered the opening keynote this morning, touting the progress made in AI development.

Another tech giant—Apple (AAPL 204.80, +0.88, +0.4%)—is expected to unveil the latest version of its mobile operating system at its Worldwide Developers Conference.

In Washington, the House is expected to vote on $9 bln in cuts to foreign aid and public broadcast funding and President Trump said that he will reveal his pick for a Fed Chair appointment soon, according to Reuters.

Treasuries are little changed this morning with shorter tenors displaying slight strength while the long bond is modestly lower. The 10-yr yield, however, is little changed at 4.51%.

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Originally Posted June 9, 2025 – Looking to build on recent strength