Global Stock Markets Driven by Optimism on Trade Deals

In the week gone by, global stock markets consolidated due to some optimism over trade talks between the U.S. and China, and strong earnings from the big tech companies like Alphabet and ServiceNow, while investors navigated a mixed bag of corporate earnings. In this blog, we’ll know in detail what happened last week (April 21, 2025 to April 25, 2025) all across the globe.

US PMI Composite At Lowest

Economic data flow also provided some reassurance-durable goods orders beat expectations, and jobless claims remained steady, suggesting underlying resilience. US PMI Composite expansion eased to 51.2 in April 2025, signaling a deceleration of activity growth to a 16-month low.

However, New York Fed President John Williams warned that current trade policies could stoke inflation, emphasizing the need for the Fed to anchor long-term expectations.

Europe Market Focused on Corporate Earnings

In Europe, equities edged higher amid a focus on corporate earnings despite persistent trade worries.

Meanwhile, Eurozone Composite PMI posted 50.1 in April 2025, down from 50.9 in March 2025 and the lowest in four months. HCOB Flash Eurozone Composite PMI Output Index posted 50.1 in April 2025, down from 50.9 in March 2025 and the lowest in four months.

China’s Rigid Trade Talks Stance

China responded assertively to US pressure, pledging new policy tools and emergency measures to counter external shocks. The Politburo signaled no urgency for a trade deal, demanding full revocation of US tariffs. The IMF noted that Asian central banks have room to cut rates to buffer against global headwinds.

Indian Market Witnessed FII Buying

Back home, domestic markets were cautious amid broad-based sector declines and rising geopolitical tensions following a terror attack in Kashmir. India responded by suspending the Indus Water Treaty and downgrading ties with Pakistan.

Stronger-than-expected corporate earnings and resilient fundamentals are drawing foreign institutional investors (Flls) into a buying spree, bolstered by optimism around a potential India-US trade deal.

Future Outlook

The RBI’s liquidity easing and improving macro indicators-falling inflation and hopes of rate cuts are expected to aid credit growth and support FY26 earnings. Looking ahead, key triggers include Q4 earnings, the FOMC meeting next month, and global trade developments.

So, open Demat account with SMC Global Securities and invest as per your investment objective and risk profile.

Reference:
SMC Global Securities’ Research Team

Author: All Content is verified by SMC Global Securities.