Emerging Markets Soar Amid Geopolitical Easing: A Global Financial Update

Emerging market equities reached record highs after U.S. President Trump toned down his geopolitical rhetoric, improving global market sentiment. Notable events included U.S.-Ukraine peace talks progress and Turkey's positive economic data ahead of a central bank decision, further brightening the outlook for global emerging markets.

On Thursday, emerging market equities soared to record highs as geopolitical tensions eased with U.S. President Donald Trump stepping back from aggressive tariff threats towards Europe and dismissing the forceful acquisition of Greenland.

Global market sentiment improved following weeks of uncertainty, with MSCI's measure of emerging equities rising 0.7%. U.S. envoy Steve Witkoff highlighted progress in Russia-Ukraine peace negotiations, indicating a resolution is near with only one issue left to address.

In Central Europe, Turkish stocks climbed 0.7% and Polish indices gained 1.4%. Meanwhile, China's lending to Africa dropped significantly to $2.1 billion in 2024, showcasing a shift in global financial dynamics.

(With inputs from agencies.)