Global Markets Steady Amid U.S.-China Trade Talks and Future Fed Rate Cuts

European markets showed resilience on Friday, maintaining a steady position as investors eagerly awaited key U.S. inflation data. The anticipation of future Federal Reserve rate cuts fueled a bullish sentiment among traders. This positive outlook was further buoyed by news of an upcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping, signaling potentially eased trade tensions after recent tariffs on Chinese imports.

Meanwhile, global indices reflected mixed fortunes. The Shanghai Composite Index in China rose, but European markets opened higher before struggling to find direction. Notably, the pan-European STOXX 600 slightly dipped yet remained on course for a weekly gain. Similarly, London's FTSE 100 held firm, while the MSCI World Equity index edged higher, benefiting from a general investor optimism centered on artificial intelligence and the prospect of Federal Reserve rate cuts.

In other developments, the Canadian dollar remained relatively stable despite President Trump's abrupt cessation of trade negotiations with Canada over a controversial ad involving Ronald Reagan. Market participants also monitored shifts in bond yields and oil prices, which dipped following previous gains. However, gold experienced a downturn, marking its first weekly loss in several weeks despite recording significant fund inflows earlier.