Risk aversion rebounded; USD extended losses post-Monday open, gold hit 3-week high.

On Monday (June 2), the Trump administration's "steel tariffs" escalated global trade tensions. The intensification of the Russia-Ukraine conflict over the weekend also sharply increased geopolitical risks. European and American stock markets fell during trading, while gold and crude oil rebounded significantly. However, later on, the news of the end of direct negotiations between Russia and Ukraine and the possibility of direct talks between the heads of major powers reversed the sentiment. The US dollar index closed down 0.76% at 98.69, with poor US manufacturing data putting pressure on the index to hit a nearly six week low. The yield of US Treasury bonds fell first and then rose, with the benchmark 10-year yield closing at 4.445% and the 2-year yield closing at 3.947%. Brent crude oil closed up 3.47% at $64.91 per barrel.