The significant events in the global economy over the past week - London Business News

"U.S. financial markets began the year on a positive note, with major stock indexes reaching new highs despite ongoing geopolitical uncertainty and emerging signs of economic cooling. Investors showed renewed confidence, particularly in smaller and value-oriented companies, which outperformed the large technology-driven stocks that dominated returns in recent years. This shift suggests broader participation in the market rally and growing optimism beyond a narrow group of companies."

"Policy announcements from Washington added volatility at the sector level. Defense stocks moved sharply during the week following contrasting signals on military spending and corporate restrictions, while housing-related shares reacted to proposed measures aimed at lowering mortgage costs and limiting large-scale institutional ownership of single-family homes. These announcements reinforced the market's sensitivity to government action, especially in industries closely tied to public policy."

U.S. financial markets began the year with major indexes reaching new highs despite geopolitical uncertainty and emerging economic cooling. Smaller and value-oriented companies outperformed large technology-driven stocks, indicating broader market participation. Policy announcements from Washington increased sector-level volatility, driving sharp moves in defense stocks and causing housing shares to react to measures on mortgage costs and institutional homeownership. Labor-market data showed slowing job growth, downward revisions to prior months, and declines in job openings and hiring activity. Manufacturing activity remained in prolonged contraction while services expanded. U.S. government yields moved modestly, and corporate and municipal bonds benefited from steady demand. European markets gained as inflation eased and economic momentum improved, led by Germany and France.

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