Global equities continued their upward march Thursday, buoyed by hopes of further U.S. trade agreements following a recently sealed pact with Japan. A global index of stocks reached a new all-time high, led by a 1% rise in Asian markets.
Japanese shares surged as much as 2%, powered by gains in the financial sector. Meanwhile, the yen strengthened amid speculation that the trade deal could pave the way for a future interest-rate hike in Japan.
In the U.S., Nasdaq 100 futures climbed 0.3% following a strong earnings report from Alphabet Inc., although Tesla Inc. shares fell in after-hours trading on a softer-than-expected forecast.
European stock futures also showed strong momentum, advancing 1.3% after reports emerged that the U.S. is nearing an agreement with the European Union. The proposed deal would impose a uniform 15% tariff on most traded goods, following a similar framework to the Japanese accord.
Meanwhile, the European Central Bank is expected to keep interest rates steady later on Thursday, marking a potential pause after more than a year of rate adjustments.
The easing of global trade tensions has reassured markets and dampened fears of a prolonged trade war. Investors are increasingly confident that the U.S. will adopt a more pragmatic approach, aiming to shield corporate profits from the disruptive effects of tariffs.
