Markets Rally Amid Trade Tension Easing

Trade tensions between the U.S. and China show signs of easing, providing a boost to global markets as Beijing evaluates talks with Washington. Positive futures and strong corporate earnings offset concerns about U.S. tariffs and their impact on companies like Apple. Economic data and earnings reports remain key influences.

Investors found relief in potential trade tension de-escalation between Beijing and Washington, which buoyed global markets on Friday. A softening stance on U.S. tariffs fostered optimism, lifting stocks worldwide despite the ongoing cost of the trade dispute, exemplified by Apple revising its share buyback program.

China's Commerce Ministry revealed that Beijing is considering discussions over the hefty U.S. tariffs imposed by the Trump administration. In response, China urged the U.S. to negotiate with sincerity and consider withdrawing unilateral tariffs. These developments eased investor concerns about economic instability, though data hints at economic weaknesses in the U.S. and China.

With surging futures in the S&P 500 and Nasdaq, European markets prepared for a robust start supported by anticipated earnings reports from major companies like Shell and BASF. Despite market optimism, Japan's finance minister highlighted unresolved trade issues, indicating potential leverage through their massive U.S. Treasury holdings.

(With inputs from agencies.)