Overview

• President Trump’s move to increase tariffs on imported steel and aluminium from 25% to 50% reignited US-China trade tensions after Beijing rejected accusations of undermining a May truce.
• Gold prices rose to around $3,371 per ounce as investors sought safe havens over fears of escalating trade hostilities.
• London’s FTSE 100 index edged up, led by gains in defence firms including Babcock International and Qinetiq following the UK’s pledge to raise defence spending.
• US manufacturing activity contracted for the third consecutive month in May, with the ISM PMI falling to 48.5 and the S&P Global PMI revised down to 52.
• Eurozone and UK manufacturing sectors stayed in contraction territory in May, though surveys indicated a slight improvement toward stabilisation.