Global Markets Rally on Central Bank Easing Signals; Currencies Show Subdued Movements

Global markets were buoyed by pervasive risk-on sentiment last week, with both FTSE and DAX setting new records and major US indices posting substantial gains. Even Hong Kong HSI extended its rally from January’s lows by 25%, underscoring a broad uptick in investor confidence. In Europe, enthusiasm was particularly pronounced following the ECB’s reaffirmation of its conditional guidance for a rate cut in June. BoE likewise moved closer to monetary easing, further lifting spirits in the financial markets.