Global Markets' Unexpected Surge Amid Trade Turmoil
World stocks experienced a remarkable rise, marking their best month since late 2023, while the dollar approached its first monthly gain in 2025. Investor sentiment oscillated amid the U.S. court's inconsistent rulings on Trump's tariffs. Despite uncertainties, negotiations with top trading partners remained ongoing.
World stocks have seen a significant upswing, marking their strongest month since late 2023. On Friday, the dollar hovered close to its first monthly increase of 2025, as investors awaited crucial inflation data and monitored developments in Washington regarding tariffs.
This volatile week in the markets has investors on edge. A recent U.S. court decision blocked most of President Donald Trump's tariffs, only for a federal appeals court to temporarily reinstate them. Despite a dip in German retail sales and wavering Wall Street futures ahead of U.S. PCE inflation data, European stocks turned positive.
The benchmark MSCI World Index is up over 5% this month, and the dollar has also made gains. Concerns have been raised over a provision in Trump's budget bill allowing a 20% tax on foreign investments, which could lead the U.S. into stagflation. Meanwhile, oil prices dropped on anticipated OPEC+ output hikes, and investors continue to grapple with Japan's debt levels and tariff impacts.
(With inputs from agencies.)
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