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News Topical, Digital Desk : Stock markets around the world have reached record highs for the first time since February. Signs of strength in the US economy overshadowed the uncertainty of trade talks. The MSCI All Country World Index rose 0.2% to 887.73 points, surpassing the record of 887.72 set in February. However, the S&P 500 and Stoxx Europe 600 are more than 2% below their highest levels this year.
The stock market has rebounded from its April lows. US President Donald Trump adopted a soft stance on tariffs, after which these markets are witnessing a boom. Expectations of a US-China trade agreement and strong US labour market data also boosted investors' morale.
Effect of AI and weak dollar
Berenberg's multi-asset strategy chief Ulrich Urban said that enthusiasm for artificial intelligence (AI) and a weak dollar boosted the price of international stocks. He said, "Investors' fears of Trump's 'TACO' (Trump always chickens out) behaviour have reduced." Trade tensions escalated again In recent days, the US and China accused each other of breaking agreements, which again increased trade uncertainty. Trump said on social media that he likes Chinese President Xi Jinping, but it is difficult to reach an agreement with him. What are the experts saying Florian Ielpo, macro research chief at Lombard Odier Investment Managers, said, "The drama of trade tariffs has now become just an uncertainty, and not a major threat to the market." Investors are eyeing the US employment data coming out this week, which can confirm the strength of the economy.
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