Global Markets Open Monday in Green
(MENAFN) Global markets opened higher Monday as optimism mounted over a potential U.S. interest rate cut this month, with investors reacting to fresh signs of a softening labor market.
According to the latest Job Openings and Labor Turnover Survey, U.S. job openings dropped to 7.181 million in July, missing forecasts of 7.38 million and marking the lowest level since September 2024. Meanwhile, nonfarm payrolls added just 22,000 jobs in August, falling short of projections, while the unemployment rate climbed to 4.3%, the highest since October 2021.
The weaker-than-expected employment figures have amplified expectations for the Federal Reserve to begin a series of rate cuts, with markets pricing in reductions in September, October, and December.
Despite ending last week lower—S&P 500 down 0.32%, Nasdaq slipping 0.03%, and Dow Jones falling 0.48%—U.S. futures pointed upward Monday as traders bet on easier monetary policy.
Gold, which surged to a record $3,600 per ounce last week on dovish rate expectations, edged down 0.1% Monday to $3,584. The U.S. 10-year Treasury yield dipped 7 basis points to 4.09% on Friday, before stabilizing at 4.1%. The U.S. Dollar Index, which closed down 0.5% at 97.8% on Friday, ticked up to 97.9% Monday morning.
Oil prices also moved higher, with Brent crude gaining 1% to trade at $66.1 per barrel at the start of the session.
In Europe, geopolitical tensions continued to weigh on sentiment. Markets monitored developments in the Ukraine war, as the region contended with broad selling pressure last week. On Friday, FTSE 100 slipped 0.09%, FTSE MIB 30 dropped 0.91%, DAX 40 declined 0.73%, and CAC 40 fell 0.31%, though European futures saw modest gains Monday.
On Friday, EU Council President Antonio Costa indicated that preparations are in progress for a new round of sanctions targeting Russia, along with plans to dispatch a delegation to the United States. At the same time, Ukrainian President Volodymyr Zelenskyy said he is currently holding talks with European partners regarding the potential deployment of thousands of foreign troops to support Ukraine.
In Asia, investor sentiment was buoyed by expectations of Fed policy easing, strong regional data, and political shifts. Japanese equities rallied following news that Prime Minister Shigeru Ishiba would resign as head of the Liberal Democratic Party (LDP) in the wake of July’s election.
Japan’s second-quarter GDP growth was revised upward from 1% to 2.2%, boosting confidence. In China, trade data released Monday showed a foreign trade surplus of $102.3 billion, beating analyst estimates.
By late Monday, the Nikkei 225 climbed 1.5%, Shanghai Composite Index rose 0.2%, Hang Seng Index added 0.4%, and Kospi Index advanced 0.1%.
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