Global stock markets surged following reports of easing U.S. inflation, bolstering hopes for Federal Reserve interest rate cuts. Strong earnings from key corporations such as Richemont and Taiwan Semiconductor further fueled the rally.

Luxury sector bellwether Richemont jumped 16% after reporting a better-than-expected 10% increase in fiscal third-quarter sales, while France's LVMH, Kering and Christian Dior all rising. Retailers Moncler, Burberry, Swatch and Hermes also crowded around the top of the Stoxx index.

European stocks rose to the highest level in over a month on Thursday, lifted by the luxury and technology sectors as a double-digit jump in Richemont’s sales and an upbeat outlook by Taiwan Semiconductor Manufacturing Co.

Wall Street equities finished lower Thursday following a mixed US retail sales report, while European luxury stocks pushed higher following strong results from Cartier owner Richemont. The Paris stock market surged more than two percent after Cartier owner Richemont reported record quarterly sales.

European stocks extended gains on Friday, after having hit their highest level in a month the previous day on the back of strong

- Canada's response to US trade policies includes C$150B in retaliatory tariffs, escalating tensions. Simultaneously, there's discussion in the US about safeguarding TikTok's presence in the country, with new developments expected post-Trump's inauguration.

Britain's FTSE 100 reached an eight-month high with support from positive earnings reports and signs of easing inflation. This buoyancy has fueled optimism around potential rate cuts by central banks like the BoE and the Federal Reserve.

The gains came after data showed US core inflation came in at 0.2%, marking the first step down in six months and reinvigorating some bets that the Federal Reserve will lower interest rates further this year. Ten-year Treasury yields, which slid 10 basis points after the data, held steady on Thursday.