Over the past weekend, the global trade situation rapidly escalated due to the Trump administration's &#34;steel tariffs,&#34; while geopolitical risks surged sharply due to the Russia-Ukraine conflict.
These developments severely undermined the recently revived market confidence, leading to a collective preference for safe-haven assets. U.S. stock futures fell 0.4% in early trading, and Asian stock markets opened weaker. Gold rose 0.7% to $3,313.52 per ounce. Due to geopolitical tensions, both Brent crude oil and WTI crude oil soared over 2%.
Regarding tariffs, on May 30, U.S. President Trump announced that he would raise the tariff on imported steel from 25% to 50%. The European Union expressed regret and prepared to retaliate.
On the Russia-Ukraine front, according to CCTV News, Ukraine revealed that on June 1, it launched a special operation against Russia, destroying 41 Russian strategic bombers with drones. About 34% of Russia's strategic bombers at major airports were attacked. Russian media stated that the Ukrainian claim is purely a rumor.
According to reports from Ukraine, Ukrainian drones penetrated over 4,000 kilometers into Russian territory and attacked four strategic bomber bases of the Russian Aerospace Forces. If this information is accurate, then according to Russian military bloggers, the scale and impact of this attack could be likened to a &#34;Russian Pearl Harbor event,&#34; and a sharp escalation of Russia's involvement in the Ukraine war may be imminent.
<h2>U.S. Stock Index Futures and Asian Markets Weaken</h2>
Specifically, the Japanese and South Korean stock markets opened lower and continued to decline. The Tokyo Stock Exchange Index and the Nikkei 225 Index saw their losses quickly expand to 1%.
All three major U.S. stock index futures fell, with the Nasdaq 100 Index futures down 0.4%.
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Shane Oliver, AMP Ltd.'s head of investment strategy and chief economist, warned that given the ongoing tariff uncertainties and concerns about U.S. debt, stocks face a high risk of declining again.
<h2>Escalation of the Russia-Ukraine Conflict, Oil Prices Surge</h2>
Despite OPEC+ agreeing to increase production by 411,000 barrels per day, oil prices surged over 2% due to the escalation of the Russia-Ukraine conflict over the weekend.
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Goldman Sachs Group stated last week that gold will continue to serve as an inflation hedge alongside oil in long-term investment portfolios.
<h2>Safe-Haven Assets in Favor: Gold Resumes Uptrend</h2>
Gold rose 0.7% to $3,313.52 per ounce during the Asian trading session, following a 2% decline the previous week. With the dollar index slightly down by 0.1%, silver, platinum, and palladium also rose, indicating overall strength in the precious metals sector.
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Additionally, the yen strengthened by 0.1%, with the dollar trading at 143.83 yen.
<h2>Yields Continue to Climb, U.S. Treasuries Experience First Monthly Decline of the Year in May</h2>
U.S. Treasuries faced their first monthly decline of the year in May, impacted by renewed uncertainty over tariffs and rising government debt levels. The yield on the 30-year U.S. Treasury bond rose for the third consecutive month, marking the longest streak of declines since 2023.
Today, the yields on 10-year and 30-year U.S. Treasuries continue to show a slight upward trend.
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Looking ahead, the U.S. will release a series of labor market indicators this week, including the May employment report, which will help guide the direction of U.S. monetary policy

The trade tensions combined with the escalation of the Russia-Ukraine conflict have rapidly increased market demand for safe-haven assets. Ukraine revealed that on June 1, it destroyed 41 Russian strategic bombers using drones, but the Russian side denied this

- The global trade situation escalated over the weekend due to the Trump administration's steel tariffs, while geopolitical risks surged amid the Russia-Ukraine conflict.  
- U.S. stock futures fell by 0.4%, Asian markets weakened, and gold prices rose by 0.7% to $3,313.52 per ounce, as Brent and WTI crude oil prices jumped over 2%.  
- The U.S. will release key labor market indicators this week, including the May employment report, which may influence future monetary policy.

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Goldman Sachs

The escalation of the Russia-Ukraine conflict leads to a surge in oil prices at the Asian open, a slight decline in U.S. stocks, and an increase in U.S. Treasury bonds and gold