Global Stocks Surge to Record Highs as Trade Concerns Ease

Global stocks concluded the week at record levels amidst positive signals from President Donald Trump regarding tariffs on China. The Japanese yen strengthened following a rate hike by the Bank of Japan.

Trump Softens Stance on Tariffs

In an interview with Fox News, President Trump indicated a preference to avoid tariffs against China. His reluctance to impose tariffs on Europe has also eased concerns. These signs of openness to negotiation have boosted global assets, including stocks and currencies.

Emerging Markets Thrive

Emerging market currencies are poised for their best weekly performance since July 2023. Europe's Stoxx 600 index is on track for its fifth consecutive weekly gain, having reached a new record.

Dollar Slides, Yen Gains

The US dollar weakened to a one-month low as investors sought higher-yielding assets. The yen appreciated against the US dollar following the Bank of Japan's interest rate increase.

Euro Area Growth Surprises

The Eurozone's private sector returned to growth in January, defying analyst expectations. The Composite Purchasing Managers' Index rose to 50.2.

Corporate Earnings Update

Ericsson shares tumbled after the telecom company reported earnings below estimates. Burberry Group surged after reporting better-than-expected sales. Banca Monte dei Paschi di Siena shares plunged after its takeover bid for Mediobanca.

Key Upcoming Events

* US University of Michigan consumer sentiment, existing home sales, S&P Global Manufacturing & Services PMI (Friday)

Major Market Moves

Stocks
* Stoxx Europe 600: +0.3%
* S&P 500 futures: Little changed
* Nasdaq 100 futures: Little changed
* MSCI Asia Pacific Index: +0.7%
* MSCI Emerging Markets Index: +0.7%

Currencies
* Bloomberg Dollar Spot Index: -0.6%
* Euro: +0.9%
* Japanese Yen: +0.5%
* Offshore Yuan: +0.7%
* British Pound: +0.7%

Cryptocurrencies
* Bitcoin: +2.3%
* Ether: +4.6%

Bonds
* 10-year Treasuries: -2 basis points
* Germany's 10-year yield: +2 basis points
* Britain's 10-year yield: Little changed

Commodities
* Brent crude: +0.2%
* Gold: +0.7%

This article was generated with the assistance of artificial intelligence.