Global markets are showing signs of cautious optimism this week, buoyed by renewed hopes of US-China dialogue, stronger-than-expected labor data, and political clarity in key Asian markets.

According to reports, US President Donald Trump is set to speak with Chinese President Xi Jinping on Friday. White House Press Secretary also confirmed that the call is expected to take place “very soon,” sparking speculation around the future of US-China trade relations. This development follows an official confirmation from the White House that the Wednesday trade offer deadline letter was indeed authentic, with administration officials signaling that negotiations are progressing toward “good deals.”

Asia-Pacific Markets Lead the Way

In the Asia-Pacific region, markets traded mostly higher, reflecting positive momentum from Wall Street. US equities had rallied after JOLTS job openings data came in better than expected, boosting investor confidence in the health of the labor market.

Among APAC indices, South Korea’s KOSPI stood out, surging as investors digested the results of the recent presidential election. The Democratic Party’s Lee Jae-Myung emerged victorious and has since been sworn in. The index is now on track to enter bull market territory—a signal of investor enthusiasm and belief in the new administration’s potential economic impact.

Europe Eyes Modest Gains

Across the continent, European equity futures point to a mildly positive open. Euro Stoxx 50 futures are up 0.3%, building on Tuesday’s 0.4% gain in the cash market. Traders appear cautiously optimistic as they await key economic data and central bank signals.

What to Watch Today

Looking ahead, investors will be closely watching a slew of high-impact data releases and events:

• Economic Data: Composite and Services PMI final readings from the Eurozone, UK, and US; US ADP National Employment report; US ISM Services Index.
• Central Banks: Policy announcements from the Bank of Canada (BoC) and the National Bank of Poland (NBP).
• Speakers: Scheduled remarks from Federal Reserve officials Bostic and Cook, as well as US Treasury Secretary Bessent.
• Corporate News: Earnings reports from PVH Corp. and Dollar Tree will be on the radar.
• Government Bond Supply: The UK is expected to tap markets for debt issuance.

As markets navigate a complex backdrop of geopolitics, economic indicators, and corporate earnings, investor sentiment remains delicately balanced. Friday’s anticipated Trump-Xi call could prove to be a pivotal moment in shaping global trade and investment outlooks for the weeks ahead.