Global Stocks Rise Amid US-China Trade Talks, Fed Rate Pause Expected

Global financial markets showed mixed reactions amid ongoing U.S.-China trade talks and anticipation of the U.S. Federal Reserve's upcoming policy decision. European stock indices, including France's CAC 40 and Germany's DAX, gained over 1%, while Japan's Nikkei 225 and Hong Kong's Hang Seng declined, reflecting sector-specific pressures and geopolitical concerns. The recent trade deal between the European Union and the United States, announced by President Donald Trump and EU Commission Chief Ursula von der Leyen, introduced a 15% tariff on EU exports to the U.S., but was generally welcomed for providing stability and clarity, despite some criticism from European leaders and auto industry groups. Concurrently, gold prices rose slightly, supported by lower Treasury yields and a softer dollar, as investors awaited U.S. inflation and employment data, with expectations that the Fed will keep interest rates steady for now despite President Trump's calls for reductions. Market analysts caution that while the EU-U.S. deal may ease trade tensions, tariffs remain embedded in geopolitical dynamics, influencing investor sentiment. Overall, markets remain cautious but optimistic, balancing trade developments with monetary policy outlooks and corporate earnings prospects.