Global Markets React to U.S. Economic Contraction and Trade War Uncertainty

World stocks remained volatile following a U.S. economic contraction, despite Wall Street's resilience and a weaker yen due to Japan's forecast cut. Trading was thin due to holidays, but strong earnings from major tech firms lifted some spirits. Investors remain cautious amid ongoing trade war tensions.

Global stocks experienced turbulence on Thursday, impacted by a contraction in the U.S. economy. Although Wall Street showed signs of recovery, the dollar's rise amid Japan's growth forecast cut sent the yen downward.

May Day holidays contributed to thin trading across Europe, but the market intrigue persisted. Despite a Q1 GDP decline in the U.S., strong earnings by Microsoft and Meta provided a reprieve from the challenges facing the 'Magnificent Seven' trades.

While Japan's Nikkei surged, Europe's markets hesitated, leaving the MSCI world stock index in negative territory. U.S. futures indicated potential recovery, yet global trade war repercussions kept investors wary. U.S. Treasuries reflected this sentiment with lower yields, and ongoing economic data releases may further influence market dynamics.

(With inputs from agencies.)