Trade Talk Triumph Spurs Market Shifts

In a significant market shift, German Bund prices fell on Friday as yields rose sharply after investors moved away from the secure confines of safe-haven assets. This movement, influenced by a recent U.S.-UK trade deal announcement, kindled hopes for similar tariff agreements globally, thereby boosting risk appetite.

However, while the markets are currently buoyed by optimism regarding ongoing tariff talks, financial analysts caution that economic threats still loom in the eurozone, which may prompt the European Central Bank (ECB) to consider further interest rate cuts.

Meanwhile, the U.S. President Trump and UK's Prime Minister Keir Starmer disclosed a limited bilateral agreement with anticipations of substantive negotiations with China. This state of guarded optimism continues to drive stock surges, though experts like Johan Javeus from SEB group warn of potential repercussions on business investments.

(With inputs from agencies.)