Global Stocks Rally As Traders Brace For Busy Week: Markets Wrap
The political uncertainty in Japan and France adds to a torrent of US data this week that will help determine the Federal Reserve’s policy path.
Stocks rose at the start of a week that is packed with events that will be crucial in shaping sentiment as markets trade near all-time highs. Gold extended a record rally.
Japanese equities advanced, buoyed by a weaker yen after Prime Minister Shigeru Ishiba announced that he will step down. The country’s long-dated bonds fell as uncertainty over his successor fueled concerns about spending.
Europe’s Stoxx 600 gained 0.2%. The advance was fueled by energy stocks amid rising crude prices, while traders braced for a confidence vote that’s expected to topple French Prime Minister Francois Bayrou’s government. The region’s bonds were broadly steady.
US equity futures rose modestly, clawing back most of the losses incurred on fears that the Federal Reserve was falling behind in supporting a rapidly cooling jobs market. Longer-dated Treasuries eased slightly while the dollar nudged 0.1% lower.
The political uncertainty in Japan and France adds to a torrent of US data this week that will help determine the Federal Reserve’s policy path. With a September interest-rate cut fully priced in, upcoming releases on consumer and producer prices will show how much room the Fed has to support a weakening jobs market.
Michael Brown, a senior research strategist at Pepperstone Group Ltd., said investors will have to consider whether a cracking labor market could stall consumer spending, posing a headwind to equities.
“For the time being, though, oodles of AI CapEx from the hyperscalers, plus solid earnings growth, calmer tones prevailing on trade, and a more accommodative policy stance, should all keep the path of least resistance leading higher,” Brown wrote.
In commodities, oil gained after OPEC+ agreed on Sunday to raise production at a modest rate next month. Crude futures had slumped last week on signs the output boost was coming. Gold advanced above $3,600 an ounce.
Corporate News:
The US is proposing annual approvals for exports of chipmaking supplies to Samsung Electronics Co. and SK Hynix Inc.’s factories in China, a compromise aimed at preventing disruptions to the global electronics industry.
More than a year after BBVA SA unveiled its unsolicited takeover offer for Banco Sabadell SA, shareholders finally get their say.
RWE AG and Apollo Global Management Inc. agreed to form a joint venture to invest in Germany’s power grid as the country seeks to ease network congestion in Europe’s biggest energy market.
Some of the main moves in markets:
Stocks
The Stoxx Europe 600 rose 0.2% as of 9:21 a.m. London time
S&P 500 futures rose 0.2%
Nasdaq 100 futures rose 0.3%
Futures on the Dow Jones Industrial Average rose 0.2%
The MSCI Asia Pacific Index rose 0.7%
The MSCI Emerging Markets Index rose 0.7%
Currencies
The Bloomberg Dollar Spot Index fell 0.1%
The euro rose 0.1% to $1.1734
The Japanese yen was little changed at 147.55 per dollar
The offshore yuan was little changed at 7.1277 per dollar
The British pound was little changed at $1.3517
Cryptocurrencies
Bitcoin was little changed at $111,335.67
Ether fell 0.2% to $4,291.4
Bonds
The yield on 10-year Treasuries was little changed at 4.07%
Germany’s 10-year yield declined one basis point to 2.65%
Britain’s 10-year yield was little changed at 4.64%
Commodities
Brent crude rose 1.6% to $66.53 a barrel
Spot gold rose 0.8% to $3,613.92 an ounce
