Global investor sentiment has surged to its highest level since February, marking a significant shift in market psychology as fears of an imminent economic downturn continue to fade.
Fund managers are increasingly optimistic about the broader economic outlook, pointing to resilient corporate spending on artificial intelligence and a growing expectation that the Federal Reserve will adopt a more dovish stance in the coming months.
This rebound in confidence follows a period of heightened volatility driven by geopolitical tensions in the Middle East.
Recent stabilization in the region, including a fragile ceasefire agreement, has helped halt the profit-taking that had accelerated following weekend escalations.
With geopolitical risks appearing to recede, investors are returning to risk assets, viewing the current environment as more conducive to growth than it was just weeks ago.
The renewed optimism is also underpinned by the sustained momentum in AI-linked capital expenditure.