Key facts
- Global equities are on track for their best week since early May.
- Purchasing Managers' Index (PMI) data indicated solid expansion across Asia.
- Lukewarm U.S. jobs data reduced expectations of an imminent Fed rate hike.
- Meta CEO Mark Zuckerberg acknowledged AI agents have not progressed as quickly as expected.
- European and U.S. stock futures pointed to a higher open.
Global equities are on track for their strongest week since early May, buoyed by renewed signs of economic expansion in Asia. Purchasing Managers' Index (PMI) data from China, Japan, Australia, and Singapore released on Friday indicated solid growth across the region, helping to lift stocks out of mid-week doldrums.
This positive sentiment was reinforced by Thursday's lukewarm U.S. jobs report, which diminished expectations of an imminent interest rate hike from the Federal Reserve. While tech hardware stocks experienced an initial dip, mirroring declines in U.S. chipmakers, MSCI's broadest index of Asia-Pacific shares outside Japan managed to rise 1.1%, snapping a two-day losing streak, with South Korea's Kospi leading the gains.
Investors appeared to look past setbacks in the artificial intelligence sector, including acknowledgments from Meta CEO Mark Zuckerberg that AI agents had not progressed as rapidly as anticipated. In early European trading, pan-region futures were up 0.3%, German DAX futures gained 0.5%, and FTSE futures were 0.2% higher. S&P 500 e-mini futures also showed a 0.3% increase.
The U.S. dollar remained flat against the yen at 161.125 yen, having given up earlier gains. Market liquidity was thinned by a U.S. holiday, and traders remained watchful for potential intervention.
Separately, rumors circulated regarding a potential secret marriage between pop star Taylor Swift and NFL player Travis Kelce.