Gold Futures Slump as U.S., China Agree to -2-

0853 GMT - Agricultural commodities are mixed, with wheat declining 0.6% to $5.19 a bushel but soybeans rising 1.4% to $10.66 a bushel. The U.S. and China have agreed to suspend most mutual tariffs pending further talks, driving soybeans' gains. China had imported the lowest amount of soybeans in April for ten years, Commerzbank analysts say in a note. According to data from the customs authority, April's soybean imports amounted to just over 6 million metric tons, an on-year decline of 29%. This was likely a result of the U.S.-China trade war, as soybeans from the U.S. became prohibitively expensive due to China's 140% counter-tariffs following U.S. levies, Commerzbank writes. The agreement to lower tariffs on U.S. goods to 10% for 90 days pending further negotiations has since raised hopes of increased soybean demand. ([e-mail])

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Gold Futures Slide on U.S.-China Trade Optimism But Uncertainty Remains -- Market Talk

0852 GMT - Gold futures slide after the U.S. and China said they will temporarily lower tariffs on each other's products. Futures are down 3.2% at $3,236.90 a troy ounce. The precious metal's safe-haven demand has been dented by the easing trade tensions, while a ceasefire between India and Pakistan further buoyed market risk-on sentiment and weighed on gold prices, ING analysts say in a note. That said, questions remain for markets as to what the end game for a U.S.-China trade deal will be, ING says. President Trump's unpredictable trade policy has been a key driver for gold so far in 2025, with the yellow metal up more than 20% year-to-date. Uncertainty is still high and volatility is likely to remain elevated across commodities markets, supporting gold prices, ING adds.([e-mail])

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European Gas Prices Rise on Russia Sanction Threats, Tariff Cut Optimism -- Market Talk

0830 GMT - European natural-gas prices rise as the European Union threatens new sanctions against Russia. The benchmark Dutch TTF contract rises 3.5% to 35.83 euros a megawatt hour. Ukraine's European allies have threatened fresh sanctions, including a permanent block on the Nord Stream 2 gas pipeline that connects Russia to Germany, if Russia doesn't agree to a 30-day ceasefire proposed by President Trump. The EU has already increased pressure on Russia by detailing plans to cut most energy imports from Russia by the end of 2027. At the same time, gas has also been boosted by a general risk-on market sentiment, as the U.S. and China agreed to substantially cut tariffs pending further talks. ([e-mail])

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Base Metal Prices Rise on U.S.-China Tariff Reduction -- Market Talk

0811 GMT - Base metal prices rise as the U.S. and China agree to substantially cut tariffs pending further talks, with LME three-month copper up 0.8% at $9,515.50 a metric ton and LME three-month aluminum up 2% at $2,465.9 a ton. According to a joint statement, President Trump's "reciprocal" tariffs on China will fall to 10% from 125%, and China will likewise cut tariffs on U.S. goods to 10% from 125% for 90 days. Base metals have ridden the resultant wave of positive market sentiment, as the tariff reductions lift the global economic outlook and raise demand expectations. Previously, forecasters had lowered China's growth outlook, given the effects of punitively high U.S. tariffs on Chinese goods. ([e-mail])

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Aramco's Upstream Division Drives Narrow Beat to Expectations -- Market Talk

0805 GMT - Aramco's first-quarter earnings narrowly beat expectations after a better-than-expected performance in its upstream business, Jefferies analysts Giacomo Romeo and Kai Ye Loh write. Earnings before interest and taxes in the upstream division were 6% above consensus expectations, they say. The focus of the analyst call later on Monday will be Aramco's dividend breakeven point given the current oil price outlook, the analysts write. Aramco's shares trade up 2% at 25.5 Saudi riyals. ([e-mail])

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Oil Prices Rise on Cooling U.S.-China Trade Tensions

0757 GMT - Oil prices rise on market optimism as the U.S. and China agree to suspend most mutual tariffs pending further talks. Brent crude is up 2.4% at $65.46 a barrel, while WTI is up 2.6% at $62.62 a barrel. Oil has gained on a general risk-on sentiment in the market, as the lowering of the tariffs improves the outlook for the global economy. That raises the prospect of a limit to weakness in oil demand, ANZ Research analysts say in a note. That said, concerns over higher supply continue to hang over the market. OPEC's move to accelerate planned production hikes signal a significant shift in supply policy, ANZ writes. ([e-mail])

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European Oil Companies Rise on Easing China-U.S. Trade Tensions -- Market Talk

0749 GMT - European integrated oil-and-gas companies trade up on easing U.S.-China trade tensions and an improved outlook for global economic growth. In early morning European trade, Spain's Repsol trades up 3.4% while France's TotalEnergies and Norway's Equinor rise around 3.1%. Britain's BP and Shell rise 2.9% and 2.6% respectively, while Italy's Eni rises 2.4%. Portugal's Galp Energia trades up 2%. The rises come as China and the U.S. have suspended the bulk of their reciprocal and retaliatory tariffs while negotiations continue.([e-mail])

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London-Listed Miners Jump on Easing China-U.S. Trade Tensions -- Market Talk

0727 GMT - Shares in London-listed miners gain on easing U.S.-China trade tensions as the two countries agree to substantially lower tariffs. The U.S. has cut levies on China to 30%, while China has reduced its tariffs on the U.S. to 10%, with more trade negotiations planned. In early morning trade, the miners led gains across the FTSE 100 index with Glencore and copper miner Antofogasta trading up nearly 7%. Anglo American climbs 6.4% and Rio Tinto is 5% higher. ([e-mail])

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Iron Ore Prices Rise as Demand Picks Up in China -- Market Talk

0215 GMT - Iron ore prices rise, supported by demand picking up from China. Shipments rebounded to 103 million tonnes, returning to normal levels of average monthly imports in 2024 and the highest volume for 2025, ANZ Research analysts write in a note. Improved supply availability from Australia and a decline in inventories supported imports, they say. Steel exports continued to be well above the monthly average of 9.2 million tonnes, they add. The most-traded iron ore contract on the Dalian Commodity Exchange is up 1.4% at CNY706.00 a ton. ([e-mail]; @ivy_jiahuihuang)

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(END) Dow Jones Newswires

05-12-25 1005ET