Global Markets Surge Amid AI Optimism and Geopolitical Talks

European and global markets begin the week on a positive note, driven by AI adoption and geopolitical discussions. Hong Kong leads gains with a notable rise, while Goldman Sachs highlights potential growth in Chinese equities due to AI. Geopolitical tensions are also in focus with talks on the Russia-Ukraine conflict.

The global markets started the week primarily on an upbeat trajectory, despite thinner liquidity from a U.S. holiday. Asian shares saw positive movements, led prominently by Hong Kong, which soared amid enthusiasm for low-cost AI adoption, particularly following the DeepSeek reveal.

Goldman Sachs has adjusted its forecast for China's growth, emphasizing that AI's widespread adoption could boost earnings per share substantially over the next decade. This optimistic outlook has fueled a significant leap in Alibaba's stock, especially after its partnership with Apple in AI services for iPhones was announced. Meanwhile, the pan-European STOXX 600 index continues to draw global funds with a steady rising trend since early this year.

Beyond market performance, geopolitical events are capturing attention. Talks on the Russia-Ukraine conflict are set to begin in Saudi Arabia, indicating sustained focus on international diplomacy. France's President Macron will convene an emergency summit amid suggestions that Europe may have limited involvement in the conflict resolution process, spotlighting U.S. and Russian roles.