Markets Today: Asian Stocks Mixed, UK Unemployment Rises to 4.6%, FTSE 100 Eyes ATH

Asian shares gave up some of their morning gains, and stock futures turned negative ahead of the second day of US-China talks.

Asian stocks rose, with MSCI's broad Asia-Pacific index (excluding Japan) climbing 0.7% to its highest level since January 2022. The yield on Japan's 10-year government bond fell slightly by 1 basis point to 1.46%, while the 30-year bond yield dropped 3 basis points to 2.88% early in the session.

Last month, yields on very long-term Japanese bonds hit record highs due to lower demand from usual buyers like life insurers and concerns about rising global debt levels.

In FX markets, the dollar tried to recover after dropping on Monday.

It rose 0.19% against the yen to 144.83. The euro fell 0.17% to 1.14, and the British pound dipped 0.07% to 1.3537.

Power Currency Balance

Markets remain cautiously optimistic as US-China talks are set to enter their second day in the UK.

U.S. President Donald Trump spoke positively about the trade talks, which ended Monday night and were set to continue on Tuesday. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer were scheduled to meet again with Chinese officials.

Any progress in these talks could calm markets, as Trump’s changing tariff decisions and the ups and downs in U.S.-China relations have hurt the two largest economies, disrupted supply chains, and risk slowing global growth.

There has been little thus far to digest for market participants with markets keen to hear more about deals on US tech exports to China and Chinese rare earths exports to the US.

Talks resume at 0900 GMT on Tuesday at Lancaster House.

Following Asia's trend, EUROSTOXX 50 and FTSE futures both rose about 0.1%, while Nasdaq and S&P 500 futures in the U.S. also pointed to a higher opening.

Looking at individual stocks and global healthcare stocks may be in for a bumpy ride this morning. Vaccine skeptic U.S. Health Secretary Robert F. Kennedy Jr. removed all members of a CDC vaccine expert panel.

This decision could cause delays for companies like GSK, Sanofi, AstraZeneca, Moderna, and BioNTech in getting their vaccines approved.

UK labor data was released this morning which saw the unemployment rate rise to 4.6% and wage growth slow to 5.2% ex-bonus. The news should be welcomed by the Bank of England (BoE) which is extremely divided on the path forward for monetary policy.

Doves will no doubt be buoyed by the data which saw GBP/USD hit a one-week low.

One of the more concerning comments from the UK Office for National Statistics was in regard to hiring practices in the UK. The Department stated “Some firms may not be recruiting new workers or replacing leavers.”

A comment that might concern UK workers as the unemployment rate rises. Will today's data have a lasting impact on the BoE decision at the June 19 meeting?

Looking at the economic calendar, the rest of the day brings ECB policymaker comments and the Euro Area Sentix Investor Confidence report which could help provide insight into the mind of consumers.

The US-China trade talks will continue in the background with any shifts in volatility likely to come from the meeting if any comments are made or reports issued. Going off yesterday though, both the US-China may want to keep their cards close to their chest and thus we may not hear much until concrete deals have been struck.

In the US the calendar is quiet ahead of tomorrow's CPI inflation release. Any signs of lingering inflationary pressure could see market participants push back their expectations for rate cuts, but any moves are likely to be short-lived in the current environment.

For a full breakdown and weekly market outlook, read Markets weekly outlook - US Inflation on Deck as Trade Uncertainty Lingers

From a technical standpoint, the FTSE 100 index is showing similarities to the DAX index before the latter printed fresh highs. Is this a sign that the FTSE will follow suit?

Looking at price action and it is hard to argue.

The v-shaped recovery which began from the April 7 lows is now around 43 points from its all-time high print of 8914, printed on March 3, 2025.

Immediate support rests at 8781 which has held firm over the past 7 trading days. A break lower may eye 8700 and the 100-day MA at 8596 as further areas of support.

A move higher here will bring the all-time highs into focus with a break of the 8914 handle bringing the 9000 handle into focus. Do bulls have another push left before a correction?

FTSE 100 (UK100) Daily Chart, June 10. 2025

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