Global stock markets slipped on Thursday as investors assessed the outcome of a crucial meeting between U.S. President Donald Trump and Chinese President Xi Jinping, alongside mixed corporate earnings and uncertainty over future interest rate decisions. Despite Trump calling the talks in South Korea “amazing,” market reactions remained muted, as traders sought clearer signals about the direction of the U.S.-China trade relationship.
During the meeting, both leaders agreed to ease trade tensions that had long unsettled global markets. Washington decided to cut certain tariffs, while Beijing pledged to maintain steady supplies of rare earth materials essential for manufacturing and technology industries. However, despite these developments, major markets across Asia and Europe remained cautious, reflecting investors’ concerns about the long-term impact of the trade truce and broader economic stability.
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In Europe, attention turned to the European Central Bank (ECB), which maintained its policy stance as inflation stayed close to target levels. Fresh data showed the eurozone economy grew faster than expected in the third quarter of 2025, boosting short-term optimism. Meanwhile, the Bank of Japan also held its interest rates steady, following the U.S. Federal Reserve’s recent quarter-point rate cut. Fed Chair Jerome Powell hinted that no additional cuts were likely in December, a move that briefly lifted the U.S. dollar and unsettled Wall Street.
On Wall Street, tech stocks dominated headlines once again. Nvidia extended its rally, becoming the first company to achieve a $5 trillion market valuation, while Apple and Amazon prepared to release their quarterly earnings. However, other major players like Alphabet, Meta, and Microsoft faced mixed investor reactions, highlighting growing concerns that artificial intelligence investments might not immediately translate into high profits. Analysts warned that if AI-driven revenue streams failed to deliver, tech shares could face sharp corrections.
In Asia, Seoul’s market found some relief as Samsung Electronics reported a strong 32 percent year-on-year profit jump, driven by AI-fueled demand for memory chips. Yet, other sectors struggled. In London, energy giant Shell’s profits rose but failed to lift its stock, while advertising giant WPP plunged nearly 14 percent after slashing its annual forecast. Auto manufacturers Volkswagen and Stellantis also saw losses amid disappointing financial updates, while Danish drugmaker Novo Nordisk fell 3 percent after entering a bidding war with Pfizer over an obesity treatment firm.
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By mid-day trading, key indices reflected the cautious mood: London’s FTSE 100 fell 0.6 percent to 9,700.08 points, Paris’s CAC 40 dropped 0.8 percent, and Frankfurt’s DAX slipped 0.2 percent. Asian markets also closed lower, with Hong Kong’s Hang Seng down 0.2 percent and Shanghai’s Composite Index down 0.7 percent. Oil prices edged lower as Brent crude dipped 0.5 percent to $63.97 per barrel, while the dollar strengthened slightly against major currencies, signaling investors’ preference for safe-haven assets amid ongoing market volatility.