From Yahoo Finance: 2025-06-02 06:39:00

The U.S. dollar hits a six-week low due to tariff concerns and military tensions, as Germany’s new chancellor prepares to meet President Trump. Markets wary of U.S. fiscal bill provisions and potential capital flight. Trump plans to double duties on steel and aluminum, while geopolitical tensions rise and gold prices creep up.

Geopolitical tensions escalate as U.S. warns of China threat, Ukraine-Russia conflict continues, and Gaza conflict persists. Major countries ramp up armaments, with Britain expanding its nuclear-powered submarine fleet. Oil prices rise 3% after OPEC+ decision to maintain output levels.

Federal Reserve hints at possible rate cuts in the second half of the year, downplaying inflation fears from Trump’s import tax hikes. China’s manufacturing activity shrinks for the second consecutive month. Poland’s stocks fall after nationalist opposition candidate wins election.

European Central Bank expected to lower rates despite euro’s rise against the dollar. ECB faces challenges with surging euro, potential capital repatriation, and conflicting effects on domestic demand and inflation. ECB’s new economic forecasts to account for currency gains and oil price drops.

U.S. GDP impacted by tariff-related import changes, leading to trade deficit reduction. Shrinking deficit may boost GDP growth this quarter. Businesses cautious about restocking, inventory levels a concern. Today’s key events: U.S. manufacturing surveys, Fed Chair Powell’s remarks, and corporate earnings from Campbell’s.

Read more: Dollar slides on trade and tax fears