Global stock markets rose last week. Trade talks between China and the United States lifted many stocks. Tokyo broke records. European markets closed at new highs. At the same time, gold and silver dropped sharply—the worst falls in years.
Stock Markets Rally on China-US Trade Optimism
Investors saw signs of less conflict between China and the United States. US President Trump first warned of 100% tariffs on Chinese rare earth exports. These warnings made markets nervous. Soon, Trump talked of a fair trade deal. He set a more friendly tone ahead of a meeting with China’s President Xi at APEC in South Korea. His words helped markets grow bolder.
Risk grew. The Dow Jones and the S&P 500 moved up even as the Nasdaq lost a bit. Better earnings and future plans increased trust in many companies. General Motors shares jumped by more than 15% after strong profits and better forecasts. Lower tariffs helped its success.
In Europe, the Paris CAC 40 reached new highs. Edenred, a finance firm, rallied about 20% when it beat sales predictions. In Asia, Hong Kong’s Hang Seng and Shanghai’s Composite also ended higher by over 1%.
Political Shifts and Their Market Impact
In Japan, a new prime minister, Sanae Takaichi, began her term. Her arrival ended a long period of political doubt. Traders now expect softer monetary steps. They also see tax cuts and more spending on defense. Some believe interest rates will rise slowly. The yen slipped as the market expected few rate boosts.
Gold and Silver Experience Significant Declines
Equities did well while metals slipped. Gold lost more than 5%—its steepest fall in ten years. Silver dropped more than 8%. A stronger US dollar and less fear in trade helped push metals downward. Rising trust in riskier stocks led some traders to sell their metals for profit.
Fawad Razaqzada, an analyst at City Index and FOREX.com, said the fall in metals was long coming. Better US-China ties and growing confidence in riskier assets played their part.
Looking Ahead: Inflation and Interest Rates
Traders now watch US inflation numbers. These reports may change views on US interest rates. The hope for lower rates shapes many plans as earnings reports come in.
Currency Movements
Currency trades moved with the news. The British pound fell to the US dollar after reports showed UK public borrowing hit a five-year high. The euro also slid a bit against the dollar as global risks stayed high.
In sum, the easing of trade risks between China and the United States brought strong stock gains. At the same time, safe assets like gold pulled back as risk appetite grew. Traders now wait for more economic data to guide their next steps.
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📝 About This Article
This article was generated by Hivebox AI in collaboration with AuCan Gold.
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