International stock indices posted mixed results on Friday as investors weighed the implications of new trade policy developments between the United States, European Union, and major Asian economies.
European markets closed higher, with the Euro Stoxx 50 gaining 0.8% on hopes that proposed tariff reductions would benefit export-oriented companies. Asian markets were more cautious, with the Nikkei 225 falling 0.3% while Hong Kong's Hang Seng managed a modest 0.2% gain.
US-EU Trade Framework
The positive sentiment in Europe followed reports that negotiators had made significant progress on a new trade framework that would reduce tariffs on automobiles, agricultural products, and technology goods.
"If these proposals move forward, we could see meaningful benefits for European exporters," said Klaus Weber, chief economist at Deutsche Bank. "The automotive sector in particular stands to gain from reduced friction in transatlantic trade."
Asian Markets Cautious
Asian markets remained more subdued as investors awaited clarity on how the new framework might affect existing trade relationships in the region. Chinese markets were closed for the Lunar New Year holiday.
Currency markets also reflected the uncertainty, with the euro strengthening against the dollar while emerging market currencies showed mixed performance. The Japanese yen weakened slightly as traders assessed the Bank of Japan's monetary policy stance.
Commodity prices were generally stable, with oil holding near recent highs on supply concerns and gold trading flat as investors balanced risk appetite with safe-haven demand.