US markets extended the positive reactions to the US cancellation of tariffs on Mexico. The S&P500 is up 0.7%, and interest rates and the US dollar are higher.

US jobs data was much weaker than expected, adding to the case for Fed rate cuts. US interest rates and the US dollar fell in response, but US equities rose, the S&P500 closing up 1.1%.

Sentiment remained moderately upbeat, the S&P500 up 0.7%, US interest rates slightly higher, oil up 2%, and the US dollar lower. US officials said it may extend the proposed US-Mexico tariff deadline. The ECB extended its on-hold projection, but was less dovish than markets had expected.

US equities and the US dollar rose as US-Mexico trade frictions appeared to dissipate. US data was mixed. Oil prices fell on US supply reports.

5 Jun by Westpac Bank

Equity markets continued to decline, the S&P500 currently down 0.7% amid regulatory probes into US tech companies. US bond yields fell after Fed official Bullard called for a rate cut, which also pushed the US dollar lower against other major currencies.

US trade tensions remained the dominant driver of global financial markets. The S&P500 closed down 1.3% to a three month low. US bond yields fell to two-year lows, gold rose 1.3% to a two-month high, oil fell 4% to a three-month low, and the US dollar weakened. On Thursday night, US President Trump threatened to impose tariffs on Mexico unless it stops immigrants from entering the US illegally.

Despite calmer equity markets, US bond yields fell after a dovish speech by the Fed Vice-chair. Oil fell 4% after US inventories were larger than expected.

Risk aversion gripped markets overnight, the S&P500 at one point down 1.3% but currently down 0.7%. Bond yields also fell, and the US dollar is stronger (although the AUD was resilient). Chinese media reported that China may cut exports of rare earth minerals to the US.

US markets resumed after the long weekend in a bearish mood, US-China trade tensions remaining at the fore. The S&P500 is down 0.7%, US bond yields are lower, and the US dollar is higher.