Global Markets Rally as Trump-Xi Summit in Beijing Dominates Investor Focus
Global equities mostly climbed on Thursday, building on fresh records set on Wall Street, as market participants closely examined the results of the summit between US President Donald Trump and Chinese President Xi Jinping in Beijing. The two leaders convened at the Great Hall of the People, addressing US-China relations and the status of Taiwan, although analysts anticipated no significant breakthroughs. US futures ticked upward.
Read also: US-China Economic Talks in Madrid Address Trade and Security
During early European trading, the UK’s FTSE 100 advanced 0.3% to 10,351.36, following a report that the British economy grew at a faster-than-anticipated rate of 0.3% in March, despite disruptions from the conflict in Iran. France’s CAC 40 increased 0.6% to 8,057.64, and Germany’s DAX rose 1.4% to 24,462.22.
In Asian markets, Japan’s Nikkei 225 declined 1% to 62,654.05, after briefly hitting a new intraday peak above 63,700, buoyed in part by strong corporate earnings. South Korea’s Kospi ended the session 1.8% higher at 7,981.41, a record driven by technology shares amid the artificial intelligence surge. China’s Shanghai Composite dropped 1.5% to 4,177.92, while Hong Kong’s Hang Seng remained unchanged at 26,389.04. Australia’s S&P/ASX 200 inched up 0.1% to 8,640.70. Taiwan’s Taiex added 0.9%, and India’s Sensex gained 1.1%.
Oil prices showed mixed movements, with the Iran war entering its third month and no clear resolution in sight. Some investors had anticipated that the Trump-Xi meeting might produce outcomes, following US officials’ statements that Beijing could leverage its strong economic ties with Tehran to encourage Iran to reopen the Strait of Hormuz. The White House reported on Thursday that Trump and Xi discussed strengthening US-China economic collaboration, with both parties agreeing that the Strait of Hormuz must stay open.
Brent crude, the global benchmark, edged up 0.2% to $105.87 (EUR90.42) per barrel, compared with approximately $70 (EUR59.79) before the Iran conflict started in late February. The International Energy Agency noted on Wednesday that supply disruptions from the strait were draining global oil inventories at an unprecedented rate. US benchmark crude slipped 0.2% to $100.86 (EUR86.14) per barrel.
Investors also monitored developments regarding China’s imports of Nvidia’s advanced H200 chips, after CEO Jensen Huang was confirmed as part of Trump’s delegation to China, alongside Tesla’s Elon Musk and Apple’s Tim Cook. The US business leaders met with Chinese Premier Li Qiang on Thursday afternoon.
On Wednesday, technology stocks propelled gains on Wall Street. The S&P 500 rose 0.6% to 7,444.25, marking another all-time high, while the Nasdaq composite increased 1.2% to 26,402.34, also setting a record. The Dow Jones Industrial Average slipped 0.1% to 49,693.20. The yield on the US 10-year Treasury dipped to 4.46% from 4.47%, though it remains significantly above the roughly 3.97% level seen prior to the Iran war.
A Wednesday report indicated that US wholesale prices surged in April, fueled by the energy shock from the Iran conflict. The US Senate also confirmed Kevin Warsh, Trump’s nominee, to head the Federal Reserve, succeeding Jerome Powell, whom Trump had frequently criticized for not reducing interest rates more quickly or substantially. The US dollar strengthened to 157.91 Japanese yen from 157.86. The euro traded at $1.1709 (EUR1), slightly down from $1.1711.
Leave a Reply