German Chancellor Friedrich Merz is currently leading a significant business delegation to China, aiming to reset bilateral ties following a period of geopolitical strain. The high-profile visit comes as China has officially surpassed the United States to become Germany’s most crucial trade partner. Both President Xi Jinping and Chancellor Merz have emphasized the importance of Germany and China acting as partners for innovation.
The visit coincides with varied reactions in global markets. Nvidia Corp., the bellwether of the AI boom, reported earnings yesterday after the market close that exceeded analyst expectations on both profit and revenue. However, the chipmaker’s stock experienced a decline of as much as 1.5% during its subsequent conference call, as the company’s outlook failed to fully impress investors hoping for even more aggressive guidance.
In another positive forecast, UBS Securities predicts an additional 20% gain in Chinese stocks, citing rising inflation expectations that are anticipated to translate into stronger corporate earnings.
Meanwhile, Italian energy giant ENI SpA reported fourth-quarter 2025 earnings of €1.2 billion, exceeding market estimates by over 20%. The strong performance was attributed primarily to robust production growth.
Across global equities, European stocks are trading slightly higher. In Asia, markets presented a mixed picture, with Japan’s Nikkei 225 gaining 1% while Hong Kong’s Hang Seng index fell by a similar margin. U.S. futures are pointing to a marginally lower open. Gold is trading stable around $5,200 an ounce.