As of 12:00 Germany time (CEST, UTC+2)
TL;DR: AI enthusiasm, a firmer dollar and focus on the Trump-Xi summit shaped the cross-asset tape into Thursday’s European session, even as oil stayed above $100 and inflation kept rates markets tense.
In Asian Equity Markets stocks traded mixed on Thursday as investors weighed the continued AI-led equity rally against hotter U.S. inflation, elevated oil prices and the opening of the Trump-Xi summit in Beijing. South Korea’s KOSPI gained around 1.8 percent to a fresh record high, supported by technology and semiconductor names, while Japan’s Nikkei slipped around 1 percent after briefly touching a new intraday peak. Chinese shares eased amid profit-taking as investors waited for more concrete summit headlines, while Hong Kong was broadly flat.
In Currency Markets the U.S. dollar held firm as higher Treasury yields and growing expectations of eventual Federal Reserve tightening supported the greenback. The dollar index traded near 98.5, while the euro was little changed around $1.172. The yen strengthened modestly toward 157.9 per dollar after a hawkish Bank of Japan comment, although broader dollar strength kept the currency under pressure. China’s yuan remained a standout, trading near a three-year high as markets looked for signs of progress from the Trump-Xi meeting, while sterling was steady after stronger-than-expected UK growth data.
In US Equity Markets stocks advanced on Wednesday despite another hot inflation print, as chipmakers and other AI-linked megacaps helped investors look through the prospect of tighter-for-longer monetary policy. The S&P 500 rose 0.58 percent to a fresh closing high, while the Nasdaq Composite gained 1.20 percent and also set a record. The Dow Jones Industrial Average slipped 0.14 percent. Semiconductor shares rebounded sharply from Tuesday’s weakness, with strength across the AI complex offsetting concern after U.S. producer prices posted their biggest monthly increase in four years.
In Commodities Markets oil edged higher as investors monitored the Trump-Xi summit for any sign of progress on the Iran war and the reopening of flows through the Strait of Hormuz. Brent crude traded around $106.6 per barrel, while U.S. West Texas Intermediate hovered near $101.8. Prices remained well above pre-war levels, keeping inflation concerns firmly in focus. Gold was largely steady near $4,690 per ounce, with geopolitical uncertainty providing support even as the firmer dollar and elevated U.S. yields capped upside.
In European Equity Markets stocks moved higher by late morning, led by technology shares as the AI trade continued to support risk sentiment. The pan-European STOXX 600 gained around 0.4 percent, while Germany’s DAX rose roughly 1.2 percent. The UK’s FTSE 100 was broadly flat despite stronger domestic growth data. European semiconductor names including STMicroelectronics, ASM International, BE Semiconductor and Infineon all advanced, while Watches of Switzerland rallied on a strong profit outlook. Burberry and 3i Group moved lower after earnings-related updates.
In Bond Markets yields eased slightly from recent highs, but the broader rates backdrop remained restrictive after this week’s hotter U.S. CPI and PPI data. The 10-year U.S. Treasury yield slipped toward 4.46 percent after recently touching its highest level in months, while the 30-year yield remained above 5 percent. Markets are increasingly pricing the risk of another Federal Reserve tightening cycle rather than near-term easing, with elevated oil prices and sticky inflation complicating the policy outlook. In Europe, yields also edged lower in quieter holiday-thinned trade, although investors continued to see meaningful ECB tightening risk ahead.
