ASIA/PACIFIC
Asian stocks advanced on Wednesday, buoyed by confirmation that trade talks between the U.S. and China are set to take place in Switzerland this week, marking the first formal discussions since U.S. President Donald Trump declared sweeping tariffs last month. In China, the Shanghai Composite Index rose 0.8% as the country’s central bank and financial regulators announced plans to cut key interest rates to support the economy, soften the impact of tariffs, and stabilize markets. In Hong Kong, the Hang Seng Index inched up 0.1%, reflecting cautious optimism ahead of the talks. Japanese markets ended slightly lower as traders returned from a two-day holiday. The Nikkei 225 Index edged down 0.1%. In Australia, the benchmark S&P/ASX 200 Index rose 0.3%.
EUROPE
European markets closed lower as traders evaluated corporate earnings and awaited key monetary policy decisions from the Federal Reserve’s first meeting since President Trump’s tariff announcements in early April and the upcoming Bank of England deliberations. The pan-European Stoxx 600 closed down 0.5% provisionally, with retail stocks down 2.2%, leading the losses. Germany’s DAX lost 0.58%, in the UK the FTSE 100 dropped 0.44% and France’s CAC 40 declined by 0.91%.
AMERICAS
U.S. stocks closed higher, rebounding from a two-day losing streak. The gains followed the Federal Reserve’s decision to keep interest rates unchanged and optimism over upcoming U.S.-China trade talks. Meanwhile, reports of upcoming trade discussions between the U.S. and China in Switzerland sparked optimism about de-escalating trade tensions.
AFRICA
Egypt’s blue-chip index fell 1.4% as most of its key constituents traded lower. Commercial International Bank, one of Egypt’s largest banks, declined 2.3%. Meanwhile, Egypt’s non-oil private sector economy contracted further in April due to weakening domestic and foreign demand, with new orders and output falling for a second consecutive month, according to a survey released on Tuesday.
MIDDLE EAST
Most stock markets in the Gulf closed lower following a string of lacklustre corporate earnings. Saudi Arabia’s benchmark index fell 0.3%. Dubai’s main share index declined 0.3%, while in Abu Dhabi, the index eased 0.1%. The Qatari index was down 0.1%. Bahrain added 0.2%, Oman rose 0.3%, Kuwait added 0.4%. Foreign investors accounted for 50% of all trading activity on the Dubai Financial Market (DFM) by the end of 2024, representing 85% of all investors registered with the bourse, according to HSBC. Meanwhile, proceeds from initial public offerings (IPOs) in the Middle East and North Africa (MENA) region more than doubled, reaching $2.4 billion in the first quarter of the year, a 106% increase year-on-year, with the number of listings rising to 14 from 10 in Q1 2024, according to EY.
COMMODITIES
GOLD
Spot gold slipped 1.2% to $3,387.26 an ounce, while U.S. gold futures fell 0.8% to $3,394.5, pressured by a stronger dollar and optimism over the U.S.-China trade talks.
OIL
Brent crude futures fell 70 cents, or 1.13%, to $61.45 a barrel, while U.S. West Texas Intermediate (WTI) crude dropped 67 cents, or 1.13%, to $58.42 a barrel as traders monitored the impact of the upcoming trade talks.
