📆 Friday, May 9
► European markets extended gains as easing trade tensions and robust corporate earnings supported sentiment. The Stoxx 600 rose nearly 0.5%, logging its fourth consecutive weekly gain. Germany’s DAX hit a record high, fully recouping losses sparked by Trump’s trade war, while the UK’s FTSE 250 (+0.3%) surged to a two-month high on the back of the US-UK trade agreement. CAC 40 trades 0.8% higher. Optimism was bolstered by ECB policymakers signaling another rate cut as early as June, contrasting with the Fed’s steady tone. Siemens Energy gained 3.5% while Maersk fell 2.6% on weak global transport guidance (which is not a good sign for the global economy).
► US futures edged higher as Trump hinted at additional trade deals and Wall Street assessed a string of upbeat earnings. Nasdaq 100 and S&P 500 futures rose 0.45% and 0.6% respectively, supported by gains in some mid-size growth stocks such as Microchip Technology (+10%), Pinterest (+15%), and CloudFlare (+ 11%). However, sentiment is not all positive following the Fed’s decision to hold rates and warning about inflation and unemployment risks. Trump told investors to “buy stocks now,” claiming the US economy is set to “go straight up.” The positive sentiment is mainly driven by optimism about a possible improvement in global trade.
► Asian markets mostly rose on trade optimism and China’s stimulus, while India (Sensex -1.1%) underperformed due to geopolitical tensions. The MSCI Asia Pacific Index gained 0.7%, a fourth weekly rise. Hong Kong’s Hang Seng (+ 0.4%) posted a second straight weekly gain, while Chinese stocks climbed as Beijing moved to lower rates and reserve requirements. Japan's Nikkei (+1.56%) hovered near one-month highs. In contrast, India’s Sensex fell again as tensions with Pakistan escalated, pulling local stocks and bonds lower.
Subscribe to see more
