Markets Rebound Amid Global Economic Jitters

Global stocks experienced a relief rally after a turbulent week, influenced by signals from U.S. Senate Democrats and upcoming economic data releases. Markets remain sensitive to developments, reflecting fears of recession and trade wars. Meanwhile, Chinese stocks offer safe-haven opportunities amid global uncertainties.

Global markets found some relief on Friday after enduring a difficult week, as optimism rose following reassurances from U.S. Senate Democrats to prevent a government shutdown. Stock futures reacted positively, with Nasdaq and S&P 500 futures seeing notable gains during Asian trading hours.

Europe braced for a strong start, with futures pointing up for major indices. This reaction underscored the nervousness among investors facing potential U.S. recession and trade conflict uncertainties. Market sensitivity was noted by Mizuho's Vishnu Varathan, comparing the situation to a haunted house where even small disturbances cause alarm.

In the U.K., expectations for January's GDP growth show a slight slowdown, while the pound benefitted from stable U.S.-U.K. trade relations. Meanwhile, the University of Michigan's consumer surveys in the U.S. are anticipated to reveal impacts of trade tensions. Contrasting with Western market woes, Chinese stocks, particularly in Hong Kong, continue to attract investors, rising amid signs of domestic economic bolstering strategies.

(With inputs from agencies.)