World stock markets surged to fresh record highs on Thursday as optimism around a potential U.S.-EU trade deal, including 15% tariffs with exceptions, buoyed investor sentiment. This followed closely after a similar deal with Japan, lifting MSCI's global equity index for a seventh consecutive session. Tokyo’s Nikkei 225 neared its all-time high, while Europe’s DAX and STOXX indexes climbed, supported by strong Deutsche Bank earnings.

Investors turned their attention to the European Central Bank's final meeting before the summer, where rates are expected to remain steady following seven cuts in the past year. Inflation in the eurozone has returned to the 2% target, and ECB President Christine Lagarde’s comments on trade relations with the U.S. are highly anticipated.

Meanwhile, the euro slipped slightly, the Australian dollar hit an eight-month high, and the yen strengthened amid expectations of rising Japanese interest rates. A surprise visit by former U.S. President Trump to the Federal Reserve raised speculation of political pressure on monetary policy ahead of the Fed’s next meeting.

Wall Street looked set for more gains as 85% of S&P 500 companies reporting earnings so far have beaten estimates. Commodity markets responded with oil climbing above $65 on growth hopes, while gold dipped due to reduced safe-haven demand.