Stocks have seen nearly consistent gains on Monday, with markets in Europe and Asia rebounding after Wall Street ended a three-day winning streak, reducing last week’s losses.
China’s manufacturing data is expected to be released on Tuesday, followed by a quarterly business sentiment survey from the Bank of Japan on Wednesday.
The upcoming critical event on Wall Street is the US government’s impending shutdown, with a deadline set for this week. Political disputes like these have historically impacted market performance.
U.S. employment figures will also be closely watched.
The futures for the S&P 500 climbed 0.5%, while Dow Jones Industrial Average futures rose by 0.4%.
In Germany, the DAX increased by 0.2% to close at 23,795.28, while the Paris CAC 40 also saw a 0.2% rise to reach 7,885.82. The UK’s FTSE increased by 0.5% to 9,328.70.
In Asian markets, Tokyo’s Nikkei 225 was the exception, falling 0.7% to 45,043.75.
The Chinese market saw advancements, with Hong Kong’s Hang Seng climbing 0.9% to 26,622.88 and the Shanghai Composite Index rising 0.9% to 3,862.53.
Australia’s S&P/ASX 200 rose 0.9% to reach 8,862.80, while South Korea’s Kospi advanced by 1.3% to 3,431.21.
On Friday, U.S. stocks trimmed their weekly losses following a report indicating that inflation was in line with economists’ expectations, although still deemed high.
The S&P 500 increased by 0.6%, the Dow Industrials rose by 0.7%, and the Nasdaq composite added 0.4%. All three indexes approached their highest levels at the start of the week.
According to the inflation measure favored by the Federal Reserve, stocks received a boost from a report indicating that U.S. inflation rose to 2.6% last month, matching the July figure. This exceeds the Fed’s 2% target but aligns with economists’ forecasts.
This has raised hopes that the Fed might continue cutting interest rates to invigorate the economy. Without these reductions, calls regarding the elevated stock prices could intensify.
The Fed just implemented its first rate cut of the year last week, and further cuts could complicate inflation issues.
Another report revealed that consumer sentiment in the U.S. was weaker than expected. A University of Michigan survey showed that consumers were dissatisfied with high prices, yet their inflation expectations for the next 12 months dropped from 4.8% to 4.7%.
Alongside consumer challenges, President Donald Trump’s tariffs are anticipated to increase inflation, with more details expected on Thursday. These include tariffs on imports of certain pharmaceuticals, kitchen cabinets, bathroom vanities, upholstered furniture, and heavy trucks starting October 1.
As is typical with Trump’s announcements on social media, the details surrounding the new tariffs were limited, leading analysts to be uncertain about their overall impact, which resulted in minor market fluctuations rather than significant shifts.
The Bellevue, Washington-based company Paccar, known for the Peterbilt and Kenworth truck brands, surged by 5.2% following the news.
Major American pharmaceutical firms have also seen gains. Eli Lilly rose by 1.4%, while Pfizer added 0.7%.
In other market activities early Monday, U.S. benchmark crude fell by 87 cents to $64.85 per barrel. International benchmark Brent crude decreased by 80 cents, settling at $68.42 per barrel.
Analysts suggest that OPEC Plus oil producers may lift production restrictions next month, raising concerns about oversupply.
The U.S. dollar declined from 149.51 yen to 148.50 yen, while the euro increased from $1.1703 to $1.1725.
Source: apnews.com