Global stock markets largely climbed on Wednesday as investors anticipated crucial US economic data and corporate earnings, which could shed light on the state of the world’s largest economy amid Donald Trump’s tariff policies.
Key US inflation and growth figures, alongside earnings from tech giants Microsoft and Meta (owner of Facebook and Instagram), were expected to influence markets significantly.
Kathleen Brooks of XTB noted that earnings and recession risks are major concerns, with market sentiment likely to shift based on these releases.
In Europe, stocks rose after data revealed stronger-than-expected eurozone economic growth in the first quarter, despite tariff uncertainties. Paris and Frankfurt gained 0.6%, driven by robust growth in France and Germany, though German automakers Volkswagen and Mercedes-Benz saw declines after reporting sharp profit drops.
Mercedes-Benz and Stellantis also paused their annual forecasts due to Trump’s 25% tariffs on car imports, which he slightly eased on Tuesday. London’s gains were tempered by losses in the oil and mining sectors, reflecting worries about reduced Chinese demand.
In Asia, Chinese manufacturing activity contracted sharply in April, signaling the impact of US-China tariffs, despite a 12% surge in Chinese exports as firms rushed to beat the levies. Hong Kong’s market rose, but Shanghai dipped.
Tokyo advanced, with Sony shares soaring 7.1% on reports of a potential chip unit spinoff. Markets have partially recovered from early-month losses as Trump showed flexibility and governments engaged in talks with the US.
Oil prices fell further amid fears that the trade war could curb global growth and demand, compounded by expectations of increased OPEC+ production.
Key Figures (1045 GMT):
FTSE 100: +0.2% at 8,476.28
CAC 40: +0.6% at 7,598.46
DAX: +0.6% at 22,552.08
Nikkei 225: +0.6% at 36,045.38 (close)
Hang Seng: +0.5% at 22,119.41 (close)
Shanghai Composite: -0.2% at 3,279.03 (close)
Dow: +0.8% at 40,527.62 (close)
Euro/dollar: $1.1364 (from $1.1390)
WTI Crude: -1.0% at $59.84/barrel
Brent Crude: -1.0% at $62.71/barrel
WHAT YOU SHOULD KNOW
The eurozone’s resilience, China’s manufacturing struggles, and sector-specific challenges in autos and commodities highlight the uneven impacts of trade tensions.
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