US-UK Trade Deal Boosts Markets Amid Ongoing Trade Tensions

U.S. stock futures were near the flatline on Thursday after President Donald Trump announced a preliminary trade agreement with the U.K., with a 10% baseline tariff remaining in place. The Dow Jones Industrial Average futures fell 0.1%, while Nasdaq 100 and S&P 500 futures also slipped. Despite the initial reaction, stocks rose after Trump expressed optimism about upcoming trade talks with China. The Dow advanced 0.6%, S&P 500 added 0.6%, and Nasdaq Composite climbed 1.1%. Retail investor bullishness hit a 3-month high, with 29.4% of respondents being bullish. After hours, Affirm pulled back 8% on revenue guidance below estimates, while Pinterest added 16% on better-than-expected guidance, and Coinbase fell 3% on weaker-than-expected revenue.

President Trump announced a "breakthrough trade agreement" with the United Kingdom, which includes increased market access for American agricultural exports and reduced or eliminated nontariff barriers. The deal cuts tariffs on U.K. cars from 27.5% to 10% and eliminates tariffs on steel and aluminum. The U.S. will maintain its 10% tariff on imported British goods. The agreement is expected to boost trade between the two countries and create jobs. The announcement boosted investor confidence, with the S&P 500, Dow Jones, and Nasdaq Composite all rising. Trump said more trade deals are forthcoming, with negotiations ongoing with countries including Canada, Italy, India, and Japan. Treasury Secretary Scott Bessent is set to meet with a Chinese trade delegation in Switzerland, although the U.S. has not yet entered into active trade talks with China. Experts predict that future trade agreements may vary in scope and that negotiations could take longer than expected.

Asia-Pacific markets were mixed on Friday as investors analyzed China's April trade data, which showed exports surged 8.1% despite US tariffs, while imports narrowed their decline. Hong Kong's Hang Seng index and mainland China's CSI 300 both slipped, while Japan's Nikkei 225 and South Korea's Kospi rose. The US-UK trade deal framework announcement boosted Wall Street overnight, with the Dow Jones, S&P 500, and Nasdaq Composite all closing higher.

U.S. President Donald Trump unveiled a trade agreement with the U.K., causing most markets to rally, but the U.K.'s FTSE 100 fell. The deal retains a 10% tariff on U.K. imports, which may favor the U.S. more. The Bank of England cut interest rates to 4.25% as expected. Coinbase's revenue missed expectations, but bitcoin prices rose above $100,000. CNBC Pro contributor Josh Brown noted the market boost from the trade deal may be temporary.

US stocks rallied on news of a US-UK trade deal outline, with the S&P 500 and Dow Industrials up 0.6% and the Nasdaq Composite up 1.1%. The iShares MSCI United Kingdom ETF (EWU) was 0.8% lower despite the deal. Other country-specific ETFs saw significant movements, including the iShares MSCI Brazil ETF (EWZ) up 4.1% and the iShares MSCI India ETF (INDA) down 3.16%. Bitcoin reclaimed the $100,000 level, up 48% since the November election. The Ark Innovation ETF (ARKK) is 25% from its February high, with holdings like Tesla and Coinbase seeing significant price movements. The industrials sector was the biggest gainer of the 11 sectors in the last week, up 2.8%, with Delta Air Lines and Rockwell Automation among notable gainers. Residential REITs also saw significant gains, with American Homes 4 Rent up 17% in a month.

China's export growth slowed to 8.1% in April as the impact of US President Donald Trump's tariffs took effect, with exports to the US declining 2.5% and imports from the US falling 4.7%. The data adds to signs of the damage the trade war is causing both economies, with China's factory activity contracting at its fastest pace in 16 months and the US economy contracting in the first quarter. The US and China are set to hold de-escalation talks in Geneva, with the US having imposed a 145% tariff on most Chinese imports and China responding with a 125% tariff on US imports. Economists warn that the trade war is having a significant impact on China's economy, with around 2.2% of its GDP directly affected by tariffs, and potentially leading to a loss of 1.1% of GDP if exports to the US are halved.

China's exports rose 8.1% in April, beating expectations, despite a 17.6% decline in exports to the US, one of its top trading partners. The strong export data was attributed to transshipment through other countries and trade contracts signed before the US imposed tariffs on China. China's imports also beat expectations, dropping 0.2% compared to a predicted 6% decline. The trade data comes ahead of talks between US and Chinese trade representatives to discuss the ongoing trade war, with US President Donald Trump hinting at a possible easing of tariffs.

China's exports rose 8.1% in April from a year earlier, beating estimates, as a surge in shipments to Southeast Asian countries offset a 21% drop in exports to the US due to tariffs. Imports fell just 0.2%, compared to expectations of a 5.9% decline. China's exports to ASEAN countries jumped 20.8%, while those to the EU rose 8.3%. The data suggests that transshipment through third countries and prior contracts may have contributed to the export growth, but trade is expected to weaken in the coming months.

China's exports grew by 8.1% in April to $315.69 billion, beating market expectations of a 1.9% increase, despite the US imposing tariffs on Chinese imports, potentially giving Chinese negotiators an advantage in upcoming trade talks with the US.