SINGAPORE, May 2 (Reuters) – Global stocks surged on Friday as signs of potential trade talks between the U.S. and China lifted market sentiment. This followed concerns raised by lackluster earnings from tech giants Apple and Amazon, which had fueled worries about the impact of a global trade war. China’s commerce ministry stated that the United States has expressed its willingness to negotiate on tariffs, signaling a possible easing of trade tensions that have disrupted global markets. Futures for the S&P 500 rose 0.8%, while those for Nasdaq were up 0.6%. European stock markets were set for a strong opening with Eurostoxx 50 futures climbing 1.3%. Analysts noted that while China has offered an olive branch, it has not ‘come crawling’ as hoped by President Trump. Investor sentiment improved on these comments, despite President Donald Trump’s unpredictable tariff policies raising fears of a global economic downturn. Data this week revealed that the U.S. economy contracted for the first time in three years during the first quarter, while China’s factory activity shrank at its fastest pace in 16 months in April due to new tariffs. The earnings season has highlighted the costs of shifting U.S. trade policies, with many companies cutting their profit forecasts. In currency markets, the Japanese yen weakened to its lowest level since April 10 but later strengthened slightly at 145.26 per U.S. dollar. The Bank of Japan lowered growth forecasts due to U.S. tariffs and maintained interest rates, suggesting the central bank might keep policy steady for some time. The U.S. dollar was on track for a 0.4% weekly gain ahead of crucial non-farm payrolls data. Japanese Finance Minister Katsunobu Kato mentioned that the country’s significant U.S. Treasury holdings could be used in trade negotiations with the United States. In commodities, gold prices rose to $3,252.11 per ounce, though they were headed for their weakest weekly performance since late February. Oil prices increased after President Trump threatened secondary sanctions on Iran and hinted at easing trade tensions, which could support demand if realized. Brent crude futures rose 0.66%, while U.S. West Texas Intermediate crude futures gained 0.7%. — new from Reuters
