Morning Wrap: US stocks finish higher on US-UK trade deal

In a nutshell:

• US equities finish higher, VIX and gold retreat

• Trump unveils UK trade deal

• Kerry away today, so wrap is a lite version

Let's dive in.

S&P 500 SESSION CHART

S&P 500 higher, finished off best levels (Source: TradingView)

OVERNIGHT MARKETS

• Major US benchmarks were higher but finished off best levels

• Trump announced a trade deal framework between the US and UK

• First major agreement hatched since the US launched pre-emptive tariffs earlier this year.

STOCKS

• Apple suggests its reliance on Google may diminish over time as AI reshapes the search ecosystem (Bloomberg, FT)

• Tech executives press U.S. Senators to ease up on regulatory pressures (Bloomberg); Uncertainty looms for Big Tech under a potential second Trump presidency (Axios)

• Elon Musk’s xAI taps Tesla’s Megapack batteries to power its Memphis-based “Colossus” supercomputer (Bloomberg)

• AppLovin soars sharply on solid Q1 results, mobile gaming business sale agreement (CNBC)

• Toyota profit guidance well short of estimates, reflecting direct impact of tariffs and adverse FX movements (Bloomberg)

• Ford hiking prices on its Mexico-produced models by as much as $2,000 due to tariffs (Reuters)

CENTRAL BANKS

• BoE cuts interest rates in a move likely to bring relief to borrowers

• Tariffs drive divergence in global central bank policies as the Fed grapples with inflation-growth trade-offs (Bloomberg)

• Bank of Japan’s March minutes reflect cautious stance amid trade tensions (Reuters)

GEOPOLITICS & TRADE

• China urges U.S. to revoke unilateral tariffs ahead of high-stakes trade discussions (Bloomberg)

• China’s fentanyl proposal helped pave the way for this week’s diplomatic talks with the U.S. (link)

• Trump reaffirms he won’t reduce tariffs on China to reignite trade negotiations (Bloomberg)

• EU planning to hit Boeing and US cars with tariffs if trade negotiations fail (FT)

• VP Vance takes more conciliatory tone on Europe, says US and Europe on same team (Reuters)

ECONOMY

• Economists scour earnings calls and private-sector data sources for signs of recession (NY Times)

• China considers housing market overhaul to cap pre-sales (Bloomberg)

• German industrial output surges as firms rush to beat US tariffs (Bloomberg)

ASX TODAY

• Atlas Arteria CEO Wehby says strategic partnerships are the priority over acquisitions – The Australian

• Perpetual’s wealth arm could fetch between A$500 million and A$700 million – AFR

• Webjet Group shareholder seeks a 10% equity stake – AFR

Key events 

Stocks trading ex-dividend: 

• Ex-Date: 9 May:  Healius (HLS) – $0.413

• Ex-Date: 12 May:  Dominion Income Trust 1 (DN1) – $0.579,  National Australia Bank (NAB) – $0.85

• Ex-Date: 15 May:  Autosports Group (ASG) – $0.035, Tamawood (TWD) – $0.11,  United Overseas Australia (UOS) – $0.02,  Wam Alternative Assets (WMA) – $0.027

Other ASX corporate actions today: 

• Dividends paid: None

• Listing: None

• Earnings: Macquarie Group (MQG)

• AGMs: QBE Insurance (10 May), Waypoint REIT (12 May), Atlas Arteria (15 May), Ampol (15 May), Resolute Mining (15 May)

Economic calendar (AEDT):

China - Balance of Trade, Exports, Imports - 1 pm