US stocks surged to fresh highs on Friday, fueled by a 9% jump in Amazon shares after the company posted stronger-than-expected results. The rally capped a week marked by renewed optimism on corporate earnings and a resilient global economy.
In Europe, flash PMI data painted a mixed but encouraging picture. The HCOB Flash Eurozone Composite PMI rose to 52.2, its highest level since May 2023, while the Services PMI climbed to 52.6, beating expectations of 51.1. Manufacturing activity stabilized, with the Manufacturing PMI holding at 50.0, signaling the first sign of balance in nearly two years.
However, France remained a weak spot. The country’s flash services PMI slipped to 47.1, and the composite PMIdropped to 46.8, as political gridlock continued to weigh on sentiment. Prime Minister Sébastien Lecornu is set to begin closed-door talks with lawmakers this week in a bid to pass a budget and stave off the threat of snap elections.
Gold traded steadily above $4,000 an ounce, maintaining its position as investors’ preferred hedge despite easing risk aversion.
Asian equities started the week on solid footing, with Japan and Hong Kong both up 1%. European markets followed suit, rising about 0.7% on average, while US futures pointed to modest gains ahead of the open.