6 Jun 2025, 08:51 GMT+2 A look at the day for European and global markets by Stella Qiu It could be the most expensive breakup ever. The "bromance," which then turned into a brawl, between U.S. President Donald Trump and billionaire Elon Musk triggered a 14% drop in Tesla shares overnight, wiping out $150 billion in market value. Added to this are the tens of billions of dollars in government contracts with SpaceX that Trump has threatened to cut. Politics aside, investors are awaiting the U.S. employment report, due out in the early afternoon, with markets worried about a downside surprise after a string of weak economic data this week. Any unexpected slowdown in the U.S. employment picture could be enough to make Federal Reserve bankers reconsider the possibility of cutting rates, after having remained inactive since December to assess the inflationary impact of Trump's tariffs. The feud between the Republican president and Musk has not been without broader consequences for the markets. Bitcoin prices BTCUSD fell 4% overnight.
The feud between the Republican president and Musk has not been without broader consequences for the markets. Bitcoin prices BTCUSD fell by 4% overnight.
Thomson ReutersTesla shares slide as Trump hits back at Musk over spending bill
Asian technology stocks followed Wall Street's decline, helping to push most of the region's stock markets into negative territory. The Nikkei NI225 was an exception, rising 0.3%.
Thomson ReutersTesla shares slide as Trump hits back at Musk over spending bill
Asian tech stocks followed Wall Street's decline, helping to push most of the region's stock markets into negative territory. The Nikkei NI225 was an exception, rising 0.3%. Meanwhile, there were signs of a possible cooling of tempers, with Trump telling Politico "everything is fine" when asked about the break with Musk, while Tesla shares stabilized in after-hours trading. Investors found little reason to cheer the phone call between Trump and Chinese President Xi Jinping, which produced little more than an agreement to continue talks. As for employment in the United States, forecasts focus on an increase of 130,000 jobs in May, with the unemployment rate steady at 4.2%. Fed Fund futures suggest little chance of a rate cut until September, when a move is priced in at 90%, with another expected in December. Fears of a downside surprise in employment data are keeping markets subdued. Wall Street futures NQ1! are mostly unchanged and European markets are set for a lower open, with EUROSTOXX 50 contracts down 0.2%.
Fears of a downside surprise in employment data are keeping markets subdued. Wall Street futures are mostly unchanged and European markets are set for a lower open, with contracts on the EUROSTOXX 50 FESX1! down by 0.2%. In currency markets, the euro EURUSD reached a six-week high at $1.1495 overnight, after the European Central Bank cut rates, but signaled it was close to the end of its monetary easing cycle. Investors have given up on the possibility of a cut in July, while the final move is expected in December.
On the currency markets, the euro EURUSD reached a six-week high at 1.1495 dollars overnight, after the European Central Bank cut rates, but signaled it was close to the end of its monetary easing cycle. Investors have given up on the possibility of a cut in July, while the final move is expected in December.
On the currency markets, the euro EURUSD reached a six-week high at 1.1495 dollars overnight, after the European Central Bank cut rates, but signaled it was close to the end of its monetary easing cycle. Investors have given up on the possibility of a cut in July, while the final move is expected in December.
Thomson ReutersEuro zone inflation and ECB interest rates
Possible drivers: -- Eurozone retail sales April -- US payrolls May
Thomson ReutersEuro zone inflation and ECB interest rates
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