Global stock markets climbed on Tuesday as investors extended a strong New Year rally, with European and Asian indices pushing to fresh record highs while U.S. futures held steady ahead of key economic data later in the week. The pan-European STOXX 600 edged higher, London’s FTSE 100 gained ground and Asian equities followed Wall Street’s momentum from the previous session. Optimism around interest-rate cuts and resilient corporate earnings continued to support risk appetite. Commodity prices also firmed, adding to positive market sentiment.

European shares saw broad gains, led by banking, energy and materials stocks, as investors rotated into cyclical sectors. Analysts said easing inflation pressures and stable growth indicators have boosted confidence across the region. Despite lingering geopolitical concerns, markets remained focused on economic fundamentals and central-bank outlooks. Trading volumes, though still recovering from the holiday period, were sufficient to sustain gains.

Asian markets mirrored the upbeat tone, with Japan’s Nikkei and other major indexes rising as exporters benefited from stable currency movements. Investors welcomed signs of sustained global demand, particularly in technology and infrastructure-related sectors. Analysts noted that improved sentiment has helped offset recent concerns about slowing manufacturing activity in some economies.

Bond markets were relatively calm, with yields fluctuating modestly as traders weighed expectations of future rate adjustments. Credit markets remained stable, reflecting continued confidence in global growth prospects. Currency markets also showed limited volatility, providing additional support to equity markets.

Looking ahead, investors are awaiting U.S. employment and inflation data later in the week, which could influence expectations around monetary policy. Market participants say continued positive data could help sustain the rally into the first quarter of the year.

Source: Reuters.