ORLANDO, Florida, June 6 (Reuters) -

- TRADING DAY

Making sense of the forces driving global markets

By Jamie McGeever, Markets Columnist

For all that the uncertainty around Washington's global tariff

war and worrisome U.S. fiscal outlook continue to unnerve

investors, not to mention the Trump-Musk public mud-slinging

circus, world markets just closed out a quietly impressive week.

Broad U.S., Asian, European and emerging market equity

benchmarks all rose, pushing the MSCI World index to a fresh

record high, while the dollar, Treasury yields and gold

generally held steady over the week.

Of course, these broad sweeps mask some notable price moves

in certain assets, such as Tesla's 14% share price crash on

Thursday, Treasury yields spiking up to 15 basis points on

Friday after the latest nonfarm payrolls data, or the dollar

sliding to within touching distance of a new three-year low on

Thursday.

Investors appear to be in a forgiving mood, willing to trust

that policymakers will dial down global trade tensions, slow the

U.S. fiscal train as it approaches the cliff edge, and steer the

world economy through these choppy waters with minimum damage.

Investors faced several key monetary policy crosswinds this

week. The Bank of Canada stood pat and the European Central Bank

cut rates by a quarter of a percentage point, but their guidance

was seen as relatively hawkish. The Canadian dollar and euro

both strengthened.

On the other hand, Switzerland's slide into deflation ups

the ante on the Swiss National Bank and traders are betting on a

return to negative interest rates by the end of the year.

Meanwhile, the Reserve Bank of India on Friday cut rates by more

than expected.

Fed officials mostly continue to hold the line that

uncertainty around tariffs and their impact on growth and

inflation is so high that the central bank is firmly in the

'wait and see' camp. If the Fed is to resume its easing cycle,

it won't be until October, according to rates futures market

pricing.

With global central banks perhaps entering a summer pause,

focus will intensify on the Trump administration's trade deal

negotiations with major trading partners like China and Europe

ahead of July 9, when Washington's pause on reciprocal tariffs

expires.

U.S. President Donald Trump indicated that his 90-minute

telephone call with China's Xi Jinping on Thursday was friendly,

and there were lots of smiles in his meeting later that day in

the Oval Office with German Chancellor Friedrich Merz.

But ultimately, the call with Xi yielded nothing concrete,

although U.S.-China talks will take place in London next week.

And it is through the 27-nation European Union that any deal

with Germany will be reached, not bilaterally.

There are so many moving parts on Washington's tariff board,

including but not restricted to: sector tariffs, reciprocal

tariffs, bilateral negotiations with dozens of countries, and

court rulings and counter rulings.

It's a little surprising, perhaps, that investors' glass is

half full.

I'd love to hear from you, so please reach out to me with

comments at . You can also follow me at @ReutersJamie and

@reutersjamie.bsky.social.

This Week's Key Market Moves

* The Tesla rollercoaster. Shares in Elon Musk's EV

company fell 15%, wiping $155 billion off its market cap. Shares

are down 27% this year, the most of the world's top 20

companies, wiping $330 billion off its value.

* The S&P 500 closes above 6000 points for the first

time

since February, and the Nasdaq rises more than 2% for a second

week despite Tesla's tumble, indicating an otherwise solid

revival in U.S. AI/tech. Global stocks hit a record high with

the MSCI World index up 1.5% on the week.

* Precious metals shine. Silver rises nearly 10%, its best

week

since September, climbing to a 13-year high of $36/oz. Platinum

also up 10%, for a second week in three.

* U.S. crude oil futures rise 6% to trade above

$64/bbl,

the biggest weekly rise since September, on supply concerns and

hopes of a thaw in U.S.-Sino trade tensions.

* U.S. bond yield curves flatten, led by selloff at the

short end,

retracing some of the recent steepening. 2s/10s curve flattens

11 bps this week, the most since February.

Chart of the Week

Again, two charts for you this week, both on tariffs.

The first shows how much tariff-related turmoil the S&P 500

has navigated since Trump was sworn in. In many ways, it's

remarkable that the index is up on the year.

The second is based on a New York Fed survey published this

week showing how U.S. firms are passing on price increases to

customers. Most strikingly, almost half of services companies

are passing on 100% of the tariffs.

Here are some of the best things I read this week:

1. U.S. Outlook: Unsure - Mark Zandi

2. King Trump vs. the Bond Market - Kenneth Rogoff

3. America's Retreat Is Europe's Big Opportunity -

Pinelopi

Koujianou Goldberg

4. US tariffs and global inflation - Robin Brooks

5. How Should Europe Respond to King Donald? - Brad

Setser

What could move markets on Monday?

* Japan GDP (Q1, final)

* Japan trade, current account (April)

* China PPI and CPI inflation (May)

* China trade (May)

* Taiwan trade (May)

Opinions expressed are those of the author. They do not

reflect the views of Reuters News, which, under the Trust

Principles, is committed to integrity, independence, and freedom

from bias.

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(Writing by Jamie McGeever; Editing by Marguerita Choy)