Global Stock Markets Close Higher as Strong Earnings Offset Policy Worries

Global markets closed broadly higher on the last trading day of July, as strong quarterly earnings from major US companies shifted investor focus away from monetary policy expectations and toward underlying corporate profitability.

Market performance

Wall Street led the gains, with Amazon's stronger-than-expected results reinforcing confidence in the resilience of the US economy and consumer spending. European and Asian indexes largely tracked the positive momentum from US markets.

• Major US indexes closed higher on strong earnings
• European and Asian markets broadly tracked Wall Street's gains
• Investor attention shifted toward corporate profitability over rate policy

What's driving sentiment

Analysts said the earnings season has provided a welcome distraction from concerns about interest rate policy and geopolitical risks, including the tariff disputes and the situation in the Middle East, which had weighed on sentiment earlier in the month.

Currency and bond markets showed relatively muted reactions, suggesting investors see the earnings-driven rally as distinct from broader shifts in monetary policy expectations.

Strategists cautioned that the rally could prove fragile if upcoming economic data points to slowing growth or if trade tensions escalate further, given the number of unresolved tariff disputes still working through diplomatic channels.