China-U.S. Economic and Trade Talks Outcomes Boost Global Stock Markets, UN and EU Welcome the Progress | Global Markets

Overnight Stock Market

The easing of trade tensions boosted market sentiment, leading to significant gains in the US stock market on Monday (May 12). The Nasdaq rose by 4.35%, the S&P 500 by 3.26%, and the Dow Jones by 2.81%. The Nasdaq Golden Dragon China Index surged by 5.40%, reaching a new high since April 4.

All three major European stock indices closed higher. The French CAC 40 rose by 1.37%, the German DAX by 0.29%, and the UK's FTSE 100 by 0.59%.

Commodity Markets

International crude oil futures settlement prices rose by over 1.5%. June WTI crude oil futures closed up by $0.93, or 1.52%, at $61.95 per barrel. July Brent crude oil futures rose by 1.64% to $64.96 per barrel.

COMEX gold futures fell by 2.76% to $3,240.1 per ounce, while COMEX silver futures dropped by 0.42% to $32.775 per ounce. Citi expects gold to consolidate in the range of $3,000-3,300 per ounce in the coming months.

Russia-Ukraine Conflict Updates

[Russian and Turkish Foreign Ministers Discuss Russia-Ukraine Negotiations]

The Russian Foreign Ministry announced on the 12th that Foreign Minister Lavrov had a phone conversation with his Turkish counterpart, Mevlüt Çavuşoğlu, to discuss President Putin's proposal to begin direct negotiations between Russia and Ukraine on the Ukraine crisis in Istanbul, Turkey, on the 15th.

[Several European Countries Issue Joint Statement Supporting Ukraine's 30-Day Ceasefire Call]

According to the UK government, foreign ministers from the UK, France, Germany, Italy, Poland, Spain, and a senior EU representative met in London to discuss the Ukraine issue and strengthen regional defense cooperation. After the meeting, the participating countries issued a joint statement saying, "The participating countries, together with Ukraine, call for an immediate, comprehensive, and unconditional 30-day ceasefire to create space for negotiations on a just, comprehensive, and lasting peace."

[Zakharova: Western Support for Ukraine's 30-Day Ceasefire Call Aims to Help It Regroup Militarily]

Russian Foreign Ministry spokesperson Maria Zakharova stated on the 12th local time that Western countries' aim in achieving a 30-day ceasefire between Russia and Ukraine is to give Ukraine a respite to restore its military potential and continue its confrontation with Russia.

[Zelensky Approves US-Ukraine Mineral Agreement]

The Ukrainian presidential website announced that President Zelensky had signed a law approving the "Agreement on the Establishment of the US-Ukraine Reconstruction Investment Fund."

[Poland Demands Closure of Russian Consulate General in Krakow by Month-End, Russia Vows Retaliation]

On the afternoon of May 12th local time, the Polish Foreign Ministry delivered a diplomatic note to the Chargé d'Affaires of the Russian Embassy in Poland, Andrey Ordash, regarding the revocation of the operating permit for the Russian Consulate General in Krakow.Ordaz stated that Poland's accusations against Russia were absurd and baseless, and that Russia would certainly take retaliatory measures.

Other market news

[Guterres Welcomes Positive Outcomes of High-Level Sino-US Economic and Trade Talks]

When answering a question from a CCTV reporter, Stéphane Dujarric, the Spokesperson for the Secretary-General of the United Nations, said that UN Secretary-General António Guterres welcomed the outcomes of the talks between China and the US in Geneva. Dujarric stated that the UN welcomed the direct dialogue on trade between China and the US held in Switzerland, which was a very positive signal for the world economy. Dujarric emphasized that trade wars must not escalate and that all parties need dialogue. Dujarric reiterated that Guterres had made it clear that no one would win in a trade war, and that the concept of "decoupling" was one of the issues that concerned him greatly, which he had expressed on multiple occasions. Therefore, this was undoubtedly a good start.

[EU Welcomes Important Consensus Reached in High-Level Sino-US Economic and Trade Talks]

Regarding the substantive progress and important consensus reached in the high-level Sino-US economic and trade talks, Eric Mamer, the Spokesperson for the European Commission, said on the 12th that the EU welcomed this. The EU hopes to reduce trade barriers and welcomes measures that contribute to the smooth operation of the global supply chain, as well as measures that support the stability and predictability of global trade and investment.

[Republican Tax Draft in the US House of Representatives: Raises Debt Ceiling by $4 Trillion, Omits Proposal for Tiered Taxation on Million-Dollar Incomes]

The Republican Party in the US House of Representatives released the text of a tax legislation draft, proposing tax cuts exceeding $4 trillion over the next decade while cutting spending by at least $1.5 trillion. According to reports, the bill also seeks to raise the national debt ceiling by $4 trillion, which is lower than the $5 trillion level favored by the Senate. After weeks of debate among Republicans on whether to raise tax rates for millionaires, the proposal does not include tax increases for the wealthiest Americans. The bill would permanently extend the 37% top individual tax rate set in Trump's 2017 tax law, despite Trump telling House Speaker Mike Johnson last week that he wanted to impose a 39.6% tax rate on individuals earning more than $2.5 million.

[CMS Releases Draft Guidance on the Third Round of Medicare Drug Price Negotiation Program]

The US Centers for Medicare & Medicaid Services (CMS) released draft guidance on the third round of the Medicare Drug Price Negotiation Program. The guidance includes policies to improve negotiation transparency, prioritize high-cost prescription drugs for inclusion in Medicare, and minimize the negative impact of negotiated fair maximum prices on US drug innovation.

[US Fed Governor Kugler: Inflation Rate Still Above the US Fed's 2% Target]

US Fed Governor Kugler stated that the inflation rate remains above the US Fed's 2% target. The inflation rate for non-housing market services remained at 3.4% in March, indicating persistent inflationary pressures.

[Fire Breaks Out at a Property Owned by UK Prime Minister Starmer]

At around 1:30 a.m. local time on the 12th, a fire broke out at a property owned by UK Prime Minister Starmer in north London. The fire has since been extinguished by the fire brigade, and the police stated that no one was injured. The specific cause of the incident is still under investigation. A spokesperson for the UK Prime Minister's Office said, "The Prime Minister expresses gratitude for the work of the emergency services. As the on-site investigation is still ongoing, the Prime Minister's Office will not make further comments." Local media reported that Starmer's property is currently being rented out.

[CK Hutchison Issues Statement in Response to Port Transaction: It Will Never Be Conducted Under Any Illegal or Non-compliant Circumstances]

CK Hutchison Holdings Limited announced that it had originally planned to discuss the port transaction at the annual general meeting of shareholders on May 22. However, in light of the continuous inquiries from shareholders and the media in recent days, CK Hutchison Holdings Limited hereby states: This transaction will never be conducted under any illegal or non-compliant circumstances. The relevant provisions have been clarified in the announcement dated March 4, 2025: "The completion of the transaction depends on the fulfillment of a series of conditions, including the consent and approval of legal and regulatory authorities, the absence of any illegal or prohibited circumstances, obtaining the necessary approval from the company's shareholders, and other appropriate and customary conditions as agreed in the final documentation."