The MSCI All-Country World Index rose as much as 0.2% to 887.73 points, surpassing a record of 887.72 hit in February. The S&P 500 and Stoxx Europe 600 are both more than 2% below peaks set earlier this year.Stocks have rebounded from April lows as US President Donald Trump took a softer tone on tariffs. Hopes of a US-China trade truce also boosted sentiment, while recent economic data showed the US labour market remains healthy.
Ulrich Urbahn, head of multi-asset strategy and research at Berenberg, said optimism around artificial intelligence following earnings was also driving sentiment, while a weaker dollar has boosted the value of international stocks. Meanwhile, “investors are less scared of Trump given his ‘TACO’ behaviour,” he said, referring to an acronym that stands for “Trump Always Chickens Out.”
Trade uncertainty has ramped up again in recent days as Washington and Beijing accused each other of violating agreements. Trump said on social media that he likes Xi Jinping, but the Chinese leader is very tough to make a deal with, underscoring ongoing tensions between the world’s largest economies.“The trade tariff drama is now increasingly seen for what it is: a massive trade uncertainty rather than a trade crash,” said Florian Ielpo, head of macro research at Lombard Odier Investment Managers.
Focus will be on key US jobs data later this week for confirmation that economic growth remains robust.
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