Global Markets Surge as U.S.-UK Trade Deal Sparks Optimism

Global markets rallied on Thursday as the United States and United Kingdom announced a new trade agreement, significantly impacting Wall Street, the dollar, and Treasury yields. The deal, revealed by President Donald Trump and Prime Minister Keir Starmer, involves a 10% tariff on UK imports but eases U.S. duties on UK car exports.

Optimism around trade continued as U.S. and Chinese officials prepared for weekend talks in Switzerland, aiming to ease the trade war between the two largest economies. Pro-cyclical and pro-growth sectors, like financials, led the charge in market gains, boosting key indices.

The S&P 500 reached a new high since April, and the CBOE volatility index hit its lowest since the same month. Meanwhile, cryptocurrencies and U.S. crude futures rose, driven by hopes for further trade negotiations. Gold, however, saw a decline in demand.

(With inputs from agencies.)