The MSCI All Country World Index rose as much as 0.2% to 887.73, just above its previous all-time high of 887.72 set in February.
Major Benchmarks Still Below Earlier Highs
Despite this gain, the S&P 500 and the Stoxx Europe 600 remain more than 2% below their peaks from earlier this year.
Tariff Easing and Trade Truce Hopes Lift Sentiment
Stocks rebounded from their April lows after US President Donald Trump adopted a softer tone on tariffs. Traders also cheered hopes of a truce in the US–China trade war. Recent data confirmed that the US labor market remains healthy, supporting overall confidence.
Ulrich Urbahn, head of multi-asset strategy and research at Berenberg Bank, said another factor was optimism around artificial intelligence following strong corporate earnings. He also noted that a weaker dollar boosted the value of international stocks. Urbahn added, “Investors are less fearful of Trump given his ‘TACO’ style,” which stands for “Trump is always timid.”
Trade Uncertainty Flare-Up
In recent days, trade uncertainty has returned. Washington and Beijing have accused each other of violating trade agreements. Trump posted on social media that he likes President Xi Jinping but said Xi is struggling to reach a deal with him. This highlights ongoing tensions between the world’s two largest economies.
Florian Ilpo, head of macro research at Swiss investment manager Lombard Odier, said, “The trade tariff saga is now increasingly being seen as a huge trade uncertainty rather than a trade collapse.”
Focus Shifts to US Jobs Data
Later this week, investors will turn their attention to key US jobs reports to confirm that economic growth remains on track.
