Global equities advanced as the Trump–Xi summit boosted optimism around AI demand and US–China relations, lifting technology shares despite mixed macroeconomic data and ongoing Middle East tensions. US markets reached fresh highs on semiconductor strength and continued enthusiasm around AI infrastructure spending, while Europe also moved higher on technology gains. Asia-Pacific markets traded mixed, with Korea outperforming on Samsung’s strength.
Wall Street rises as AI optimism and China talks lift tech
US equities advanced as renewed AI optimism and improving US–China relations supported risk appetite despite mixed macroeconomic data and ongoing Middle East tensions. The DOW, S&P 500, and NASDAQ all advanced +0.8%, with the DOW reclaiming the 50,000 level and both the S&P 500 and NASDAQ reaching fresh intraday highs. Technology led gains, driven by semiconductor and AI-related strength, with Cisco surging +13.0% after beating earnings expectations and outlining an AI-focused restructuring plan, while Nvidia rose +4.2% after reports that the US approved H200 chip sales to Chinese firms. Sentiment was also supported by the start of the US–China summit, with Chinese President Xi Jinping signalling greater economic openness and encouraging deeper involvement from US companies including Nvidia, Apple, and Tesla. Macroeconomic data was mixed, with retail sales rising +0.5% in April, in line with expectations, while initial jobless claims rose to 211k, above forecasts. Elsewhere, chipmaker Cerebras surged +75.0% on its debut, marking the largest IPO of the year. Broader AI infrastructure names moved higher on continued enthusiasm around AI capital expenditure. The US two-year yield remained relatively flat at 3.996%, while the 10-year yield lost -2bp to 4.463%.
AI optimism lifts Europe
European equities advanced as technology stocks led gains on improving AI demand expectations tied to the US–China summit. The STOXX 600 rose +0.8%, Germany’s DAX gained +1.3%, France’s CAC 40 added +0.9%, and the UK’s FTSE 100 gained +0.5%, with ASML rising +3.0% and Infineon gaining +3.8%. In contrast, Burberry fell -6.8% on weaker European and Middle East performance, while 3i dropped -12.8% after warning that Middle East tensions would weigh on its key portfolio company, Action.
Korea leads as Asia-Pacific trades mixed
Asia-Pacific equities traded mixed as investors focused on the high-stakes Trump–Xi summit for signals on US–China relations and global trade. Japan’s Nikkei 225 fell -1.0%, while South Korea’s KOSPI gained +1.8%, led by Samsung, which rose +4.2% to a record high despite escalating labour strike risks. Hong Kong’s Hang Seng ended flat as China’s Shanghai Composite dropped -1.5%. Australia’s ASX 200 edged up +0.1% as CBA (+1.8%) stabilised after its record fall, though technology stocks lagged after Xero fell -9.0% on margin pressure concerns tied to its US expansion. In New Zealand, the NZX 50 declined -0.3%, with Air New Zealand (-5.8%) under pressure amid expectations of one of the company’s largest-ever losses.
Oil rises as gold slips
WTI Crude and Brent Crude both rose +0.4% to US$101.47/bbl and US$106.04/bbl respectively. Gold lost -0.4% to US$4,670.94/oz.
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