US equity markets rebounded strongly, with the benchmark indices posting gains of greater than >2% and settling near their session highs amid signs of an easing in trade tensions and as Federal Reserve Chair Jerome Powell signalled that the central bank was open to easing monetary policy - Dow jumped +512-points or +2.06% with the major banks trading strongly as Treasury yields climbed. Citgroup Inc rose +5.22%, Morgan Stanley +4.3% and Bank of America Corporation +4.65%. The broader S&P500 +2.14%, NASDAQ +2.66%. All three major indices logged their second best session of 2019. Fed Chair Powell spoke in Chicago overnight and said that the central bank will “act as appropriate to sustain the expansion.” Mr Powell noted, however, the Fed does not know “how or when” global trade issues will be resolved - “We are closely monitoring the implications of these developments for the US economic outlook.” On the US-China trade front, the Chinese Commerce Ministry said in a post that the “differences and frictions between the two sides” should dealt with through talks, adding that any talks “need to be based on mutual respect, equality and mutual benefit.” Separately, a US Treasury official was quoted as saying that the Department's Secretary Steven Mnuchin would see a Chinese delegation at the upcoming G-20 meeting, although he could not confirm if a bilateral meeting would take place. Elsewhere, Mexican Foreign Minister Marcelo Ebrard said on Tuesday (4 June) that he was anticipating that the US and Mexico would find common ground on immigration and trade.
