Investor optimism grows as equities rise and trade tensions ease
NEW YORK/SYDNEY – Global equity markets ended the week on a high note, with Wall Street and European shares rising on Friday. Investors responded positively to strong corporate earnings and a truce in the US-China tariff war, easing fears of a global economic slowdown.
European markets celebrated their fifth consecutive weekly gain, supported by encouraging earnings and renewed hopes for stronger trade relations. Meanwhile, US stocks also climbed, despite mixed economic signals such as weak housing data and falling consumer sentiment.
However, not all markets benefited. Gold prices dropped sharply and were set for their biggest weekly loss since November. The risk-on mood reduced the appeal of the safe-haven metal, as more investors turned toward equities and bonds.
Oil futures also posted weekly gains, though they remained relatively low. This helped boost stocks further, as lower energy prices ease pressure on corporate expenses and consumer inflation.
In the US, consumer sentiment weakened in May, with households worried about the effects of President Trump’s trade policies. The University of Michigan’s survey also reported a spike in one-year inflation expectations, adding to concerns.
Housing data showed that single-family housing starts in the US dropped by 2.1% in April. Analysts linked this decline to high mortgage rates and ongoing tariffs on imported building materials, which continued to challenge the construction sector.