News

Ford on Tuesday reported a 16.3% year-over-year U.S. sales increase for May, as the automaker continues an employee pricing program amid rising tariff costs.

A few hours ago, S&P 500 futures had been solidly negative but they slowly climbed back to unchanged and that’s where US markets have opened. The S&P 500 is down just 1 point while the Nasdaq is flat.

So we wait for whatever is coming from the White House today.

This article was written by Adam Button at www.forexlive.com.

WSJ China reporter Lingling Wei is out with a notable profile on Chinese Vice Premier He Lifeng, who is leading trade negotiations with the US. She contrasts his hardball style with the pragmatic Liu He, who negotiated during Trump’s first term.

“Liu He was too nice,” said a Chinese official who participated in some of the U.S.-China discussions during Trump’s first presidency. “He Lifeng is different.”

That stance is a problem for a market that wants/hopes to see trade tensions steadily dwindling in the remaining years of Trump’s term. The US has floated a call between Trump and Xi this week as a potential breakthough after some issues entered talks but it’s not clear it will happen.

In Xi’s view, the people who consult with Chinese officials said, China overall is more prepared and self-sufficient than during the trade war the two countries fought in 2018 and 2019. And the Chinese leader has readied a team to take a tougher stance this time.

Notably, the report also frames the prior ‘Phase One’ trade deal during Trump I as a continuation of the unequal ‘century of humiliation’ type of deals.

On the upside, the article does lay out a path to some kind of repeat of the Phase One deal that would see China committing to buy US products as a path towards stability between the superpowers. What’s clear though is that China wants something in return.

This article was written by Adam Button at www.forexlive.com.

The S&P 500 was heading for a slight lower open after the index gained modest ground yesterday in the first trading day of June.

• Economic, price environment is becoming more complex
• Economic developments have changed sharply since Trump’s tariffs in April
• Tariffs could hurt demand via heightened uncertainty, which could weigh on the economy
• Firms could swallow rising costs from tariffs but this will worsen corporate profits
• In turn, that will have negative impact on wages
• Tariffs could affect Japan’s economy via financial, FX market moves also
• Still expect prices to gradually rise and withstand downwards pressure from tariffs
• Corporate profits also stay elevated despite tariffs impact
• Underlying inflation in Japan is rising moderately
• Even as economy slows, Japan likely to maintain mechanism in which wages and prices rise in tandem
• No change to our view that underlying inflation is to gradually head towards 2% target
• BOJ expected to continue hiking rates if underlying inflation accelerates to 2% as projected
• We will judge without preconception whether economic, price forecasts will materialise

He is still making a case for rate hikes down the road but the wording definitely sounds less confident than say three to four months ago. Back then, Ueda would note that economic conditions are playing out accordingly and will support the conditions for them to hike rates further. Now, he’s just mostly saying that things should play out that way but there is much uncertainty up in the air.

In case you missed it, his comments from earlier in the day here reinforces that narrative.

This article was written by Justin Low at www.forexlive.com.

It’s been a shaky few days for Tesla (TSLA), and the chart is flashing some classic red flags that traders would be wise to pay attention to.

Tesla closed yesterday with a 1.09% decline, but that’s only part of the story. From its recent high just three days ago, the stock has dropped more than 9%, pulling back hard and filling the gap between May 23 and May 27. That’s often a sign that momentum is shifting—and not in the bulls’ favor.

The real action started on May 30, when Tesla triggered what many chart-watchers call a bear flag—a bearish continuation pattern that tends to precede deeper downside moves. If you’re new to trading, here’s the short version: after a strong drop, the stock consolidates in a rising channel or wedge, then breaks lower again. And that’s what looks to be unfolding now.

On the volume side, yesterday’s trading clocked in at 81.87 million shares, still under its 30-day average of nearly 110 million, but enough to confirm interest around these levels. The put/call ratio sits at 0.69, hinting that many traders are still positioning for upside—but contrarians might see that as misplaced optimism.

The key support zone is around $319, while the next major resistance sits near $368. If Tesla can’t reclaim and hold above the $340s in coming sessions, that $319 level could be tested sooner than many expect.

This comes just days after renewed headlines involving Elon Musk and substance allegations stirred uncertainty. (Catch up on that here:ForexLive coverage.)

What should traders do?

If you’re just starting out, this is a great learning moment:

• Bear flags suggest continuation of the downtrend, not a bounce.

• Gaps filling can often mean the easy upside is already gone.

• And when price hits a support zone, don’t jump in without signs of reversal—wait for volume and a strong green candle first.

Reminder: Trading stocks like TSLA can be volatile. Use stop-losses, and don’t risk more than you can afford to lose. Always do your own research, this is not financial advice and may even include errors (find any? Comment below so we can fix that!). Visit ForexLive.com (evolving to investingLive.com later this year) for additional views.Trade or invest in Tesla stock at your own risk only.

This article was written by Itai Levitan at www.forexlive.com.

President Donald Trump is pushing Japan and South Korea to invest in Alaska LNG, threatening them with higher tariffs.

More office space is now being removed than is being added. That should help the recovery in a real estate sector that was crushed by the pandemic.

Roark’s investment follows a boom for chicken-focused restaurants and a rising tolerance for spice among younger consumers.

Alaska Airlines is planning to offer flights to Rome