OpenAI has closed a deal valuing the maker of ChatGPT at $500 billion, a milestone that fueled fresh optimism in U.S. technology shares. The news comes as investors continue to bet on Federal Reserve rate cuts, keeping European equities at all-time highs.
In corporate Europe, Banco Bilbao Vizcaya Argentaria SA ruled out a capital increase to boost its bid for Banco Sabadell SA, while Banca Monte dei Paschi di Siena SpA’s chief executive signaled further consolidation could follow its transaction with Mediobanca SpA. Bankers also see Europe’s long-dormant IPO market showing signs of revival, adding to the upbeat sentiment.
In the Middle East, Saudi Arabia is weighing plans to scrap restrictions on foreign equity investors, a move that could further open its capital markets.
Autos were in focus as Chinese carmakers reached record market share in Europe. Renault SA is exploring a partnership with Chery Automobile Co. to produce vehicles in South America.
Asian markets joined the rally, with Hong Kong’s Hang Seng Index surging past 27,000 for the first time in four years, led by technology stocks. Alibaba Group Holding Ltd. has soared more than 100% so far in 2025.
Meanwhile in Washington, President Donald Trump is expected to use the looming government shutdown to push through job cuts across federal agencies.
Markets reflected the optimism: European equities gained about 1%, U.S. futures were little changed, the dollar weakened slightly, and gold traded above $3,900 an ounce.
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