A look at the day ahead in European and global markets from

Ankur Banerjee

The record-setting AI-led rally appears to be chugging along

just fine as investors shrug off the prospect of interest rates

staying higher to combat inflation, oil prices above $100 a

barrel and an impasse in negotiations to end the Iran war.

Adding to the mix, a high-stakes summit between U.S.

President Donald Trump and China's Xi Jinping has so far yielded

few details, leaving markets on edge. Still, with expectations

low, even a continuation of the status quo could elicit a

positive response.

Trump described Xi as a great leader and a friend as they

kicked off two days of talks on Thursday that are set to cover

their fragile trade truce, the Iran war and U.S. arms sales to

Taiwan.

The pomp-filled summit began at Beijing's imposing Great

Hall of the People, where Xi greeted Trump on the red carpet,

with the leaders shaking hands and smiling warmly. Trump has

brought along a group of CEOs, including Elon Musk and Nvidia ( NVDA )

CEO Jensen Huang, looking to resolve issues with China.

But for now the AI theme remains in charge and Asia in the

lead. South Korea's KOSPI and Taiwan stocks are

just shy of their record peaks touched earlier this week, while

Japan's Nikkei hit another all-time high.

All three indexes have been turbocharged by AI-driven bets,

with little sign of momentum fading as Asian chipmakers bring in

record profits from their hyperscaler customers.

SK Hynix, easily the best performing major stock

since 2025, is on the cusp of joining the trillion dollar club.

The stock is up more than 1,000% since the start of 2025.

Investor focus will also be on a slate of UK economic data

that will reveal the extent of the damage from the Iran war that

erupted at the end of February as the political drama heats up,

keeping pressure on sterling and government bonds.

British Prime Minister Keir Starmer has so far resisted

calls to resign after one of Labour party's worst defeats in

last week's local and regional elections.

Key developments that could influence markets on Thursday:

Economic events

UK GDP estimate for March and Q1

UK industrial and construction output data for March