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Global stock markets pushed higher on Thursday after strong U.S. employment data and encouraging corporate earnings lifted investor confidence around the world.

Major indexes, including Europe’s STOXX 600 and MSCI’s All-World gauge, flirted with record highs as traders absorbed better-than-expected jobs figures that eased fears of a slowing economy.

Futures for Canada’s main index also ticked up alongside Wall Street, reflecting a broad uplift in risk appetite across regions.

While the robust labour market reduced wagers on near-term interest rate cuts, markets interpreted the data as a sign of economic resilience.

Investors now await inflation reports and further earnings announcements to sustain the positive tone in coming sessions.

Equity gains were supported by rotation into technology and cyclical sectors, with corporate results from key firms reinforcing optimism about earnings sustainability.

Investors noted that strong job growth has helped underpin consumer demand, a key driver for many listed companies. Bond markets showed mixed reactions as yields reflected recalibrated rate expectations following the job data.

Currency markets also fluctuated slightly with renewed confidence in growth narratives. Traders said that the overall improvement in sentiment offered some relief after recent bouts of market volatility.

In Asia, benchmarks finished notably higher with Seoul’s markets leading gains amid firmer tech stock performance, while other regional bourses also participated in the rally.

Strong employment signals from the U.S. were seen as a catalyst for regional risk assets. However, market breadth varied, with defensive sectors lagging behind growth-oriented names.

Forecasters said the rally remains underpinned by earnings strength and stabilising macro signals, even as geopolitical headlines continue to influence flows.

Traders emphasised the importance of upcoming macro data releases, including inflation prints and central bank commentary, which could influence market direction later in February.

Clear policy signals from major central banks, particularly around interest rates, are expected to be key drivers of risk asset performance.

Equity analysts also cited selective valuation concerns in certain high-growth sectors, suggesting continued rotation may be in play.

Looking ahead, markets will monitor whether strong labour data and earnings momentum can be sustained into the heart of the earnings season.

Investors said that confidence may remain elevated if companies continue to beat forecasts and economic indicators align with stable growth.

However, any surprises in inflation or monetary policy could shift sentiment quickly.

Source: Reuters.