Global Markets Stir with Rate Cut Predictions and Trade Tensions
Asian shares rose sharply amid expectations of U.S. Federal Reserve rate cuts. Oil prices dropped due to OPEC+ output increases and trade tensions involving U.S. tariffs on India over Russian oil. Strong earnings, particularly in tech, buoyed U.S. shares. Japan and China reported robust service sector growth.
Asian markets continued their upward trajectory as rising confidence in U.S. Federal Reserve rate cuts fueled investor optimism. Strengthening earnings reports further galvanized U.S. shares, offsetting the slide due to weak jobs data and potential rate cuts tied to political pressures.
OPEC+ production increases weighed on oil prices, while U.S. heightened trade tensions with India over Russian oil acquisitions. Despite the oil market's reaction, gold remained stable at a weekly high, reflecting ongoing geopolitical and economic uncertainties.
Notably, technology firms such as Nvidia, Alphabet, and Meta led U.S. market gains, mirroring robust earnings and growth expectations in the sector. Meanwhile, economic data from Japan and China underscored a buoyant service sector outlook, with significant gains in PMI readings. Vietnam witnessed historical highs in share prices, highlighting sustained regional market strength.
(With inputs from agencies.)
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