Markets sense opportunity as erratic US spurs 'middle powers' into action

Group 1 - The global order is being reshaped by U.S. President Donald Trump's policies, prompting "middle powers" to take proactive measures in response to U.S. hegemony [1] - Financial markets are increasingly favoring non-U.S. equity markets and energy stocks, with a bullish outlook on currencies like the euro and Canadian dollar [1] - Major equity markets and emerging markets are projected to experience double-digit earnings growth in 2026, as the focus shifts away from U.S. exceptionalism [1] Group 2 - Over 73% of companies in Europe's STOXX 600 index that reported fourth-quarter earnings exceeded expectations, compared to a typical quarter's 54% [1] - The FTSE 100 index has surpassed the 10,000 milestone for the first time and is up 5% this year, outperforming the S&P 500's 1.4% increase [1] - European energy stocks are nearing their highest levels since 2008, driven by a focus on critical resources and energy production [1] Group 3 - The "Made in Europe" strategy aims to protect local industries by setting minimum requirements for European content in manufactured goods, although it has caused divisions among EU countries [1] - Analysts believe that the long-term effort to bolster growth through trade and increased spending will persist, benefiting currencies like the Canadian dollar, Japanese yen, and euro [1] - Middle powers are forming strategic partnerships that align with their interests, as highlighted by the recent actions of Canada and the EU [1]