Global Markets Rally Amid U.S. Growth Hopes and Shifting Policies

Global shares are heading for their largest monthly gain since May, driven by optimistic U.S. growth forecasts. Speculation around Japanese and euro zone monetary policies affects the dollar. Wall Street gains are fueled by an AI investment surge. However, Donald Trump's tariff policies raise global market uncertainties.

Global shares are poised for their largest monthly gain since May, buoyed by strong growth expectations in the U.S. The MSCI world stock index recorded a steady 3.2% monthly increase, with the S&P 500 and U.S. tech stocks benefiting from a surge in artificial intelligence investments.

However, the dollar faced pressure, dropping 0.9% to 149.93 yen amidst renewed speculation about Japanese rate hikes. Meanwhile, the euro rebounded thanks to unexpectedly high inflation figures in Tokyo, pushing the dollar index 1.4% lower for the week.

Adding to market uncertainty, President-elect Donald Trump's pledged tariffs on imports from Mexico, Canada, and China have set investor nerves on edge, prompting recommendations to cautiously approach European stocks.

(With inputs from agencies.)