Global Stocks Hit Record Highs Amid Trade War Optimism

Overview:

Global stock markets are closing the week at record levels as President Trump's stance on China tariffs appears to have softened. The Bank of Japan's interest rate hike has also contributed to a stronger yen.

Market Highlights:

* President Trump: The president indicated in an interview with Fox News that he prefers not to use tariffs against China.
* Negotiation Hopes: Signs of Trump's willingness to negotiate have boosted global assets, including stocks and currencies.
* Emerging Markets: Emerging-market currencies are poised for their best weekly performance since July 2023.
* Eurozone: Europe's Stoxx 600 index is set for a fifth consecutive weekly advance, reaching a new high.
* U.S. Futures: US futures slipped slightly (0.2%), following the S&P 500's recent peak.
* Data Boost: Upbeat economic data, including easing inflation, is supporting both bonds and stocks, according to Goldman Sachs.
* Burberry Surges: Burberry Group Plc saw a jump in share prices after reporting strong sales.
* Eurozone Growth: The euro area's private sector returned to growth in January, surprising analysts.
* Bank of Japan: The Bank of Japan raised interest rates for the first time since July, leading to a stronger yen.

Key Market Movements:

Stocks:

* S&P 500 futures: -0.2%
* Nasdaq 100 futures: -0.2%
* Dow Jones Industrial Average futures: -0.1%
* Stoxx Europe 600: +0.3%
* MSCI World Index: +0.2%

Currencies:

* Bloomberg Dollar Spot Index: -0.5%
* Euro: +0.7% to $1.0488
* British pound: +0.6% to $1.2421
* Japanese yen: Little changed at 156.03 per dollar

Cryptocurrencies:

* Bitcoin: +2.2% to $105,432.33
* Ether: +4.7% to $3,402.77

Bonds:

* 10-year Treasury yield: Little changed at 4.64%
* Germany's 10-year yield: +2 basis points to 2.57%
* Britain's 10-year yield: +2 basis points to 4.66%

Commodities:

* West Texas Intermediate crude: +0.5% to $75.03 a barrel
* Spot gold: +0.8% to $2,776.17 an ounce