Markets extend record run as trade dominates

Markets hit record highs Wednesday thanks to optimism over US trade deals, the AI sector and an expected interest-rate cut from the Federal Reserve.

Europe’s major indices mostly climbed nearing the half-way stage after all-time peaks for some Asian markets as US President Donald Trump voiced optimism on the eve of crunch trade talks with China’s Xi Jinping.

Wall Street hit fresh record highs Tuesday on the eve of a rates announcement from the US Federal Reserve, which observers expect will unveil a quarter-percentage-point cut to borrowing costs.

“A key test of investors’ optimism looks set to come later (Wednesday) with the US Federal Reserve’s decision,” said AJ Bell investment director Russ Mould.

The European Central Bank and the Bank of Japan are expected to hold interest rates s