Canadian Prime Minister Mark Carney met with Chinese President Xi Jinping in Beijing on Thursday, signaling a renewed effort to mend strained bilateral relations and deepen economic cooperation between the two countries. Trade discussions are expected to focus on Canadian fishing and hydrocarbon exports, as well as the potential import of Chinese electric vehicles. Carney said the talks centered on positioning Canada and China as “strategic partners,” marking a notable shift in tone after years of diplomatic friction.
The meeting comes as financial ties between China and Europe continue to deepen. Chinese companies sharply increased payments settled in euros last year, rising 23% to 1.2 trillion yuan—the fastest pace since 2010. The surge followed a 5.4% increase in commercial flows between China and the European Union in 2025, highlighting the euro’s growing role in cross-border trade as firms diversify away from the U.S. dollar.
In currency markets, Japan’s finance minister said authorities remain prepared to support the yen if needed, reinforcing official concern over recent volatility and the currency’s weakness against major peers.
Equities extended their technology-driven rally. Asian stocks rose 0.3% to reach a record high, led by gains in technology shares as investors continued to favor growth sectors tied to artificial intelligence and digital infrastructure.
In Europe, investor appetite for defense-related technology is also accelerating. German-based Digital Transformation Capital Partners is on track to raise a €500 million venture capital fund focused on defense startups, which would be the largest of its kind in Europe, reflecting heightened security concerns and increased government spending.
European stocks opened slightly higher, while U.S. equity futures also advanced, pointing to a positive start on Wall Street and suggesting the tech-led rally still has momentum as investors weigh geopolitical shifts against strong sector fundamentals.
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