The escalating conflict in Iran entered its sixth day, with both Iran and Israel intensifying attacks across the region. The sustained hostilities continued to rattle energy markets, sending Brent crude prices surging an additional 3% to reach $84 per barrel.
Amidst the geopolitical turbulence, China’s economic planners outlined their ambitions for the coming year. The nation has set its 2026 growth target at a range of 4.5% to 5%, largely aligning with market expectations. Beijing also committed to a significant policy goal: ending deflation within 2026, signaling efforts to stimulate domestic demand.
Across the Eurozone, officials continued to navigate complex trade relations. Europe is maintaining a freeze on the ratification of its trade deal with the United States, citing persistent uncertainties surrounding U.S. tariff policies. In a related development, European Central Bank Governing Council member Pierre Wunsch indicated that the Euro would likely appreciate should the bloc pursue a more prominent global role for its currency, suggesting potential shifts in monetary strategy.
Global equities showed signs of optimism, with European and Asian stocks trading higher on Friday, partly driven by expectations for a resolution to the Mideast conflict. Japan’s Nikkei 225 climbed 2%, while U.S. futures indicated a slightly positive open. The U.S. dollar remained stable against its major peers, and gold, a traditional safe haven, advanced 1% to reach $5,200 an ounce.