The DAX climbed 1.28% to a record high of 24,479 points. London too held its ground near historic peaks. The CAC40, while up 0.68% last week, still lags far behind its own former glories - dividends reinvested or not. Meanwhile, Wall Street is staging an impressive revival. Since early April, the S&P 500 and Nasdaq have advanced 24% and 30% respectively. Technology stocks, though hardly a monolith, have been the engine of this rebound. The sector's internal divergence is particularly striking. Microsoft, Meta, Nvidia and Broadcom are all comfortably in the black. In contrast, Apple, Alphabet, and Amazon - three of the so-called ‘triple A' titans - are adrift in negative territory. Tesla, with its flamboyant 26.92% decline, appears to be less a stock than a referendum on Elon Musk's dalliance with Donald Trump.

This diversity of performance is, paradoxically, a source of reassurance. It suggests that investors are approaching the tech rally with discernment rather than desperation. No longer are they blindly herding into big tech out of FOMO; instead, they are differentiating between stories and strategies. Rationality, at last, is making a modest comeback.

Beneath the glimmer of rising indices lies the quiet hum of macroeconomic tension. The American jobs market, a traditional beacon of economic vigour, continues to deliver encouraging numbers. For Wall Street, that is reason enough to push higher. For the bond market, however, it's a cause for concern. A resilient labour market diminishes the likelihood of interest rate cuts by the Federal Reserve. Yields on 10-year US Treasuries have surged to 4.494%, suggesting a more cautious stance among fixed-income investors.

The week ahead promises a fresh test for the markets' newfound optimism. On Wednesday, the US will unveil its consumer inflation data for May. Expectations are for a year-on-year reading of 2.3% - a figure that, if realised, may calm some nerves without altering the policy calculus. Thursday brings producer prices, and Friday delivers the University of Michigan's consumer sentiment index. A sparse calendar, perhaps, but potentially potent in its implications.

On the corporate front, a few key names will step into the spotlight. Taiwan Semiconductor, Oracle, and Adobe are due to report earnings, each one a weather vane for investor appetite in artificial intelligence and beyond.

Amidst the financial flows, geopolitics continue to simmer. Sino-American trade envoys are meeting in London, a delicate backdrop to a week when China mulls expediting rare earth exports to the EU. The US, meanwhile, is tightening sanctions on Iran and weighing yet another reprieve for TikTok. French President Macron is preparing an official visit to Greenland - a curious geopolitical footnote in an increasingly multipolar world.

Asian markets, for their part, have embraced the global cheer. Modest gains across Shanghai, Hong Kong, Tokyo, and Seoul suggest that risk appetite is not a Western preserve. In Europe, the mood remains cautious but not sombre. Leading indicators hover near equilibrium - balancing hope with hard-nosed realism.

Today's economic highlights:

See the full calendar here.

  • GBP / USD: US$1.36
  • Gold: US$3,315.17
  • Crude Oil (BRENT): US$66.32
  • United States 10 years: 4.49%
  • BITCOIN: US$105,552

In corporate news:

  • Anglo American might receive just half of the $4.9 billion valuation of De Beers due to the diamond market downturn.
  • HSBC approaches former McKinsey CEO for chairman role.
  • Rio Tinto is in talks with the Australian government to rescue its aluminum smelter.
  • Frasers Group is considering a bid for Revolution Beauty, according to Sky News.
  • Nvidia has announced new partnerships with British companies to enhance its AI capabilities.
  • Renault engaged by France's defense ministry to initiate drone manufacturing in Ukraine.
  • Peptonic Medical requested a three-month extension for company reconstruction due to delays and US tariffs.
  • Deutsche Bahn faces criticism over its fleet modernization plan by 2030 from Pro Bahn.
  • TGS ASA partnered with Oseberg to enhance data accessibility and analysis capabilities.
  • Getty lawsuit against Stability AI poised to set a significant legal precedent in AI.
  • Nikola is recalling 209 vehicles in the US due to a possible fire hazard.
  • Meta could invest more than $10 billion in Scale AI, according to Bloomberg.

See more news from UK listed companies here

Analyst Recommendations:

  • Premier Foods Plc: Berenberg maintains its buy recommendation and raises the target price from GBX 250 to GBX 270.
  • Ssp Group Plc: RBC Capital maintains its sector perform recommendation and raises the target price from GBX 190 to GBX 200.
  • Pets At Home Group Plc: RBC Capital maintains its underperform recommendation with a price target raised from GBX 210 to GBX 220.
  • Dunelm Group Plc: RBC Capital downgrades to sector perform from outperform with a target price of GBX 1175.
  • B&M European Value Retail S.a.: RBC Capital maintains its outperform recommendation and reduces the target price from GBX 375 to GBX 360.