Global equity markets traded mixed during the week but remained on track to record positive weekly gains as early selling pressure eased following softer oil prices and stronger-than-expected corporate earnings.
Market sentiment was influenced by geopolitical developments, a busy earnings season and monetary policy decisions from major central banks, including the US Federal Reserve (Fed), the Bank of England (BoE) and the Bank of Japan (BoJ).
At the time of reporting, major US indices were positioned to close the week higher.
The Dow Jones Industrial Average gained 0.5 per cent, the S&P 500 rose 0.3 per cent, while the Nasdaq Composite increased by 0.6 per cent.
The recovery was supported by a rebound in semiconductor stocks after an early-week sell-off.
Investors returned to technology shares, betting that the artificial intelligence-driven market rally still has further room to grow.
Market sentiment was also boosted by strong earnings reports from major technology companies, particularly Microsoft, which reported a 43 per cent year-on-year increase in cloud revenue.
European equities also recorded gains during the week.
The STOXX Europe 600 rose by 1.7 per cent, while the FTSE 100 advanced by 2 per cent.
The positive performance was supported by declining oil prices, which helped ease concerns over inflation pressures.
A generally resilient corporate earnings environment also contributed to investor confidence across European markets.
Asian markets recorded mixed performances.
Chinese equities gained, with the Shanghai Composite Index rising 0.5 per cent, supported by a recovery in domestic semiconductor stocks.
However, Japan’s Nikkei 225 declined by 0.4 per cent as investors expressed concerns over the sustainability of high artificial intelligence-related capital expenditure.
Emerging markets faced renewed pressure during the week.
The MSCI Emerging Markets Index declined by 4 per cent, weighed down by losses in South Korea and Taiwan.
South Korea’s market fell by 1.4 per cent, while Taiwan declined by 1.2 per cent.
Meanwhile, frontier markets recorded a positive performance.
The MSCI Frontier Markets Index gained 1.9 per cent, supported by strong performances from Vietnam and Kuwait.
Vietnam’s market advanced by 3 per cent, while Kuwait rose by 1.6 per cent.
Analysts said investors are balancing optimism around corporate earnings and artificial intelligence growth against concerns over valuations, geopolitical risks and the future direction of global monetary policy.
