Global stock markets remained near record highs on Friday, with European indexes poised for their eighth consecutive weekly gain, following a key announcement from U.S. President Donald Trump. Trump stated that reciprocal tariffs would not be immediately imposed, leaving room for further negotiations.
This development helped ease fears of a broad trade war, which had caused gold prices to spike earlier in the week, setting a new record. Gold was on track for its seventh consecutive week of gains.
Trump had previously threatened tariffs on all countries imposing duties on U.S. imports, which heightened concerns about a global trade conflict. However, his directive on Thursday deferred new tariffs, initiating an investigation into tariffs imposed on U.S. goods by other countries.
Analysts from Barclays noted that while markets may find temporary relief, it remains unclear whether the delay signals a reduced likelihood of eventual tariff implementation.
The situation has already sparked a trade war, starting with tariffs on Mexico and Canada, followed by a pause, but continuing with duties on Chinese goods. Michael Brown, senior research strategist at Pepperstone, remarked, “It seems that Trump’s bark has once again proved worse than his bite when it comes to the matter of trade.” The volatile nature of trade news continues to influence market sentiment, leading to fluctuating prices.
European markets have recently outperformed, bolstered by expectations of a possible peace deal between Russia and Ukraine, along with prospects for interest rate cuts and reduced U.S. tariffs. Goldman Sachs raised its 12-month price forecast for Europe’s STOXX 600 index, citing the potential for a ceasefire in Ukraine.
In Asia, Chinese tech stocks have rallied, with the Hang Seng Tech Index reaching a three-year high. Hong Kong’s benchmark index rose over 2% on Friday, marking its fifth consecutive week of gains.
James Ooi, market strategist at Tiger Brokers, noted that the rally driven by DeepSeek’s breakthrough could have further upside if the Chinese tech sector can capitalize on AI opportunities.