Gold Surpasses $4,000 as Stock Market Rally Resumes – Europe Market Wrap

US market futures climbed, signalling that the stock rally is likely to resume as investors ignore concerns about skyrocketing valuations and billions of Dollars pouring into AI. Gold rose above $4,000 per ounce.

S&P 500 futures were up around 0.2% after the benchmark snapped an eight-day winning streak. Nasdaq 100 futures have also climbed. AMD increased its gains in premarket trading after an explosive jump following its multibillion-dollar AI merger with OpenAI. Tesla expanded after offering a lower-cost version of its best-selling electric vehicle.

The Dollar rose versus key peers for the third consecutive day, although Treasury yields declined.

Elsewhere, Europe’s Stoxx 600 benchmark rose 0.6%, on course for another record close, while the basic resources sector increased by more than 1%. Lloyds led banks higher following a favourable decision on the cost of disputed car loans. European equities were also boosted by efforts to end France’s budget deadlock. The country’s CAC 40 equity index gained by up to 0.8%, while bond yields declined.

Meanwhile, the Yen plummeted to its lowest level since February, pushed down by Takaichi’s surprise election to lead Japan’s ruling LDP. Following the pro-stimulus lawmaker’s election, markets reduced their expectations for a BoJ interest rate hike.