Big Tech Giants Drive Market Rebound with Strong Earnings

US stocks rebounded on Friday driven by strong big tech earnings, with London also hitting a record peak amidst a flurry of takeover bids for UK companies. Wall Street opened higher despite concerns over inflation and economic growth, as tech giants like Microsoft and Alphabet surpassed earnings expectations, boosting market sentiment. Alphabet's announcement of a dividend and share buybacks led to a 10% surge in its stock, while Microsoft reported a 20% increase in quarterly profits.

Investors also reacted to the PCE price index, which rose more than expected in March, delaying potential interest rate cuts. In Europe, London's FTSE 100 index reached a new high amid increased merger and acquisition activity. Australian mining company BHP made a $39 billion bid for Anglo American, which was rejected, sparking a rise in Anglo American's shares. Cybersecurity firm Darktrace accepted a $5.3 billion takeover offer, while a bidding war ensued for UK music rights owner Hipgnosis Songs Fund.

Market optimism was further fueled by positive first-quarter results from NatWest in the UK. In Asia, equity markets saw gains, with the yen hitting a 34-year low against the dollar after the Bank of Japan maintained interest rates. The week ended with the Hang Seng Index in Hong Kong rising by 2.1% and West Texas Intermediate crude oil prices increasing to $84.09 per barrel.