Global stock markets extended gains following news of a trade agreement between the European Union and U.S. President Donald Trump. S&P 500 futures rose 0.5% after a record close on Friday, while European stock futures gained 1.1%. The MSCI All Country World Index also reached a new high, supported by easing trade tensions. The deal imposes 15% tariffs on most EU exports but is seen as avoiding a full-blown trade war. Markets also took encouragement from signs that the U.S. and China may extend their tariff truce, with senior officials set to meet in Stockholm.
Investors remain optimistic, although the rally may be tempered by expectations that such agreements were largely priced in. Key economic events this week—including central bank meetings in the U.S. and Japan, a U.S. jobs report, and earnings from major tech companies like Apple and Amazon—will test the market's resilience. Over 80% of S&P 500 firms have beaten profit estimates, helping sustain investor confidence.
Elsewhere, Asian markets showed mixed performance, with Japan’s Topix down while Hong Kong and China gained. Goldman Sachs raised its 12-month forecast for the MSCI China Index, citing improving trade prospects and a stronger yuan. In other developments, Thailand and Cambodia are holding talks to resolve their most serious border clash in over a decade.
On the corporate front, Samsung secured a major $16.5 billion chip production deal with Tesla, while Heineken faced weaker beer sales due to retail disputes. McDonald’s is also divesting property assets in Hong Kong. Meanwhile, oil and gold prices edged higher, and cryptocurrencies saw gains, with Bitcoin up 0.7% and Ether up 2.9%.
