AI Deals and U.S.-China Trade Bolster Global Market Momentum

European stocks remained buoyant on Wednesday, driven by optimism surrounding new AI deals and anticipated improvements in U.S.-China trade relations. Wall Street hit a record high, propelled by Nvidia's commitment to build seven supercomputers for the U.S. Department of Energy and a restructuring deal between OpenAI and Microsoft.

Meanwhile, Asian markets also performed strongly, with Japanese and South Korean stocks setting new records. The MSCI World Equity Index increased slightly, while Europe's STOXX 600 saw a modest gain. Investors are keenly awaiting earnings reports from technology giants Microsoft, Alphabet, and Meta, hoping for evidence of sustainable AI growth.

U.S. President Donald Trump, on his Asia tour, plans to discuss tariff reductions with China, seeking a reciprocal commitment to curb fentanyl exports. As the U.S. Federal Reserve meeting approaches, market participants are looking for signals on future interest rate cuts, with the possibility of quantitative tightening halting altogether.