International business briefs: Weaker dollar takes toll on China’s forex reserves

Beijing — China’s foreign exchange reserves rose by a less-than-expected $3.6bn in May, official data showed on Saturday, as the dollar continued to weaken against other major currencies.

The country’s foreign exchange reserves, the world’s largest, rose 0.11% to $3.285-trillion last month, below the Reuters forecast of $3.292-trillion. They were $3.282-trillion in April.

The yuan weakened 1.05% against the dollar in May, while the dollar slid 0.23% against a basket of other major currencies. Reuters

China’s central bank bulks up on gold

Beijing — China’s central bank added gold to its reserves in May for the seventh straight month, official data from the People’s Bank of China (PBOC) showed on Saturday.

Spot prices for gold, often seen as a refuge from economic and geopolitical uncertainty, were steady in May after hitting an all-time high of $3,500/oz in April. China’s gold reserves rose to 73.83-million fine troy ounces at end-May from 73.77-million ounces the previous month. Its gold reserves were valued at $241.99bn at the end of last month, down from $243.59bn at the end of April, the PBOC said.

The world’s central banks are on track to buy 1,000 tonnes of gold in 2025, which would be their fourth year of huge purchases as they diversify reserves from dollar-denominated assets into bullion, consultancy Metals Focus said. Reuters

European stocks log second straight week of gains

Bengularu — European shares rose for a second straight week, buoyed by robust US employment figures and diminishing concerns over trade friction that had previously rattled investor confidence.

The pan-European Stoxx 600 rose 0.3% on Friday, and logged a 0.6% gain for the week.

The US’s better-than-expected jobs report relieved anxieties regarding the US labour market’s resilience, probably prompting traders to reassess how US President Donald Trump’s trade policies might impact employment trends.

“The data fuelled optimism that the US jobs market, and so the US economy, is weathering the Trump tariff shock better than expected,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

Market sentiment drew additional support from signs of easing in the US-China trade relationship following Thursday’s telephone conversation between Trump and Chinese President Xi Jinping. Reuters

Fitch affirms Hungary’s stable outlook

Bengularu — Ratings agency Fitch affirmed Hungary’s ratings at “BBB” on Friday, citing strong structural indicators relative to peers under the same ratings grade, balanced against a higher public debt, record of unorthodox economic policies and the economy’s high openness.

The agency also maintained its outlook for Hungary at “stable”. Reuters

Bank of England wary of second-round effects

Dubrovnik — The Bank of England (BoE) still expects the ongoing rise in inflation to fade but it is “not sanguine” about it after price growth proved much more persistent than expected only a few years ago, BoE monetary policymaker Megan Greene said on Saturday.

“Our view is that we can look through it, but of course there’s a pretty big risk,” Greene told a conference in Croatia.

“The last time we had a lot of second-round effects. We’re hoping that we won’t have second-round effects this time around, but we’re not sanguine about it.” Reuters

Indonesia-EU trade talks to wrap up after nine years

Jakarta — Indonesia said on Saturday free trade negotiations with the EU, which have been ongoing for nine years, are expected to be concluded by the end of June. 

Airlangga Hartarto, the chief economic minister for Southeast Asia’s biggest economy, met EU trade commissioner Maroš Šefčovič in Brussels on Friday.

“Indonesia and the European Union have agreed to conclude outstanding issues and we are ready to announce a conclusion of substantial negotiations by the end of June 2025,” Airlangga said in a statement. Reuters