Euro Markets Soar Despite Tariff Tensions

Investors in European and global markets are optimistic amid negotiations on Trump's tariffs and robust earnings from luxury brand Hermes. Asian markets follow suit with China's tech rally. Key indicators are positive in Asia and Europe, with attention on European tariffs and Hermès' earnings.

Investors are cautiously optimistic as recent developments in both European and global markets suggest potential easing of trade tensions. Donald Trump's reciprocal tariff discussions have hinted at room for negotiation, providing a positive outlook. Meanwhile, the luxury brand Hermes' performance is set to be a highlight after a series of strong earnings in Europe.

Asian markets are mirroring Wall Street's positive sentiment, driven by US inflation data that aligns with Federal Reserve expectations. Chinese tech stocks continue their upward trajectory following DeepSeek's recent success, pushing Hong Kong's index to a four-month high and marking its best weekly performance since September. Notably, the Hang Seng has surged 11% this year, standing as Asia's top market.

In Europe, Germany's DAX index achieved a record 14% gain this year, outperforming other European benchmarks like those in Switzerland, France, and Spain. Traders are eyeing earnings from Hermes to gauge its resilience amid luxury sales slowdowns. As the week concludes, European indices may see profit-taking, with futures suggesting a downward open. The market eye remains on Trump's tariff strategy, influencing future trade dynamics.

(With inputs from agencies.)