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Global stocks surge on trade hopes and earnings focus

Global equity markets rallied to start the week, buoyed by renewed optimism over US-China trade negotiations ahead of next week’s anticipated talks between US President Donald Trump and Chinese President Xi Jinping. Wall Street led gains on Monday, with European indices setting fresh records, and Asia-Pacific markets continuing the positive momentum with fresh all-time highs on Tuesday. Investor sentiment was also supported by expectations for key corporate earnings, with Netflix (Tuesday) and Tesla (Wednesday) results due over the next two days. Gold prices shot up to start the week, trading around USD 4320 per ounce. US Treasury yields were steady to slightly lower, with yields on two-year and ten-year notes below 3.5% and 4%, respectively.

  • Data
  • Autore Shane Strowmatt, Senior Investment Writer
  • Tempo di lettura 5 minuto

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South Korea’s Kospi rose 0.2% on Tuesday, reaching its sixth consecutive record high, as optimism around final-stage trade negotiations with the US continued to lift sentiment. The rally was bolstered by gains in major auto stocks, with Hyundai Motor climbing 6.5% and Kia up 4.3%, while Samsung Electronics also advanced. Japanese equities touched fresh records, with the Nikkei 225 gaining 0.2% and benefiting from news that Sanae Takaichi is set to become Japan’s first woman prime minister after winning Monday’s vote in parliament. Australian rare earth companies surged after a significant minerals agreement was signed between Australia and the US, with the S&P/ASX 200 up 0.7%. Hong Kong’s Hang Seng Index advanced 1.4% and mainland China’s CSI 300 increased 1.5%.

US equities rally as trade tensions ease

US stock markets began the week strongly, with the Dow Jones Industrial Average rising 1.1% to 46,706.58 points and the S&P 500 up 1.1% to 6735.13 points on Monday as investor sentiment improved following signs of progress in US-China trade talks. The Nasdaq 100 gained 1.3% as well, buoyed by optimism over upcoming third-quarter earnings and sustained growth in artificial intelligence-related technology spending. Apple shares climbed 3.9%, reaching a record high, while shares of electric vehicle maker Tesla advanced 1.9% ahead of its quarterly results expected on Wednesday.

EuroStoxx 50 hits record on trade optimism

The EuroStoxx 50 rose 1.4% to a record high of 5680.93 points on Monday, lifted by renewed optimism regarding US-China trade discussions and plans for further talks this week. Germany's DAX gained 1.8% and France's CAC 40 added 0.4%. BNP Paribas shares fell 7.7% following an adverse court ruling related to business in Sudan, overshadowing the Paris market. The SMI failed to make a gain, slipping 0.1% as Swiss heavyweights such as Roche and UBS weighed on the index.

Canadian business sentiment remains subdued

Business sentiment among Canadian firms showed a gradual improvement in the third quarter, according to results released on Monday, but overall outlooks and investment intentions remain weak owing to persistent trade tensions and tariff-related uncertainty. The share of companies preparing for a recession edged higher to 33%, up from 28% last quarter and above late-2024 levels, as ongoing concerns about trade disputes continue to dampen growth expectations for both domestic and export sales. Most firms report sufficient capacity and are not experiencing significant labour shortages, limiting the need for additional hiring or expansion.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Chubb, Coca-Cola, Danaher, Elevance Health, General Electric, Intuitive Surgical, Lockheed Martin, Netflix, Philip Morris, Texas Instruments, and UniCredit.

Economic data in focus: Swiss trade balance (08:00), European Central Bank President Christine Lagarde speaks (13:00), and Canadian Consumer Price Index (14:30).

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Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.