Global stock markets surged at the start of the week on hopes that the US and China are close to reaching a trade deal. Asian markets led the way, with Japan's Nikkei breaking through 50,000 for the first time and South Korea's Kospi surging more than 2.5%.
Europe's Stoxx 600 index rose 0.3%, supported by technology, industrials and mining sectors, which are usually sensitive to trade issues. US futures also rose ahead of the open, with the Nasdaq 100 up 1.2%.
IBOSS analyst Rupert Thompson said the latest trade news was the main driver of the global surge and bolstered expectations of a long-term trade truce. But he warned that geopolitical tensions had not yet subsided and the new tariff action on Canada showed uncertainty about US trade policy.
Meanwhile, Goldman Sachs' Christian Mueller-Glissmann said markets were in the late-stage slowdown of the economic cycle, but increased liquidity could provide a fresh boost to global growth. The bank maintained a cautious outlook.
While optimistic sentiment dominated the early part of the week, analysts stressed that geopolitical risks and uncertain tariff policies could still create uncertainty in global markets towards the end of the year.
