Global Stocks Rise on China-US Trade Easing as Gold Falls

Global stock markets showed gains influenced by easing trade tensions between the U.S. and China and improving investor sentiment amid reduced credit risk concerns in the banking sector. U.S. President Donald Trump expressed optimism about reaching a fair trade deal with Chinese President Xi Jinping during their upcoming meeting in South Korea, which helped bolster markets along with a rare earth materials supply deal between the U.S. and Australia. Japan's Nikkei index surged to record highs on the expectation of Sanae Takaichi becoming Prime Minister, while gold prices fell from recent peaks as investors shifted focus back to equities. Despite positive market trends, concerns lingered over European banks potentially facing pressure if U.S. dollar funding tightens, as highlighted by the European Central Bank's chief economist. Investor confidence was further supported by better-than-expected corporate earnings reports, especially from companies like General Motors, which benefited from lower tariff costs. However, ongoing U.S.-China trade tensions remain a risk, with retaliatory measures such as China's restrictions on rare earth exports potentially disrupting global supply chains and impacting market stability.