Global Markets Surge Amid U.S.-China Trade Optimism and AI Investment

Global stocks climbed on optimism over a U.S.-China trade truce and AI investments, while the dollar rose with reduced expectations of U.S. rate cuts. European stocks rallied as U.S. fiscal data faced delays, focusing investor attention on private-sector employment reports. The Fed's rate plans and geopolitical tensions continue to shape market dynamics.

Global markets saw a significant uplift on Monday, fueled by optimism surrounding a U.S.-China trade truce and burgeoning investments in artificial intelligence. Meanwhile, the dollar surged to a three-month high, reflecting adjusted expectations over future U.S. rate cuts. Despite doubts about the longevity of the trade agreement, investors remained optimistic.

The broad STOXX 600 index climbed 0.4% amid a busy week for earnings in Europe. Simultaneously, the dollar gained ground and U.S. stock futures rose marginally. Investors are eyeing upcoming private-sector employment data over the typically crucial U.S. jobs report, affected by government shutdown-related data delays.

Despite the Federal Reserve's rate cut last week, Chair Jerome Powell indicated a December cut wasn't certain, yet the markets remained buoyant due to historical positives, including the trade truce. As traders priced a 68% chance of a December rate cut, the dollar retraced its previous losses against other major currencies.

(With inputs from agencies.)