Global stock markets experienced gains in both European and Asian regions on Monday, buoyed by a report indicating a gradual cooling in the robustness of the US jobs market. These developments have raised optimism for a potential reduction in interest rate hikes.
European Markets on the Rise
In Europe, stocks exhibited strong performance. Germany’s DAX surged by 0.7% to reach 15,949.69 points, while the CAC 40 in Paris recorded a gain of 0.8%, closing at 7,354.96. London’s FTSE 100 also joined the upward trend, advancing by 0.8% to finish at 7,522.38 points.
US Futures Indicate Positivity
Looking ahead, the futures for the S&P 500 and the Dow Jones Industrial Average displayed a positive outlook with gains of 0.2%. It’s worth noting that US markets were closed on Monday in observance of the Labor Day holiday.
Analyst Tan Boon Heng from Mizuho Bank commented on the prevailing sentiment, saying, “It appears that global markets are primed to be smitten with the idea of a ‘Nirvana’ Fed tightening outcome, entailing the ‘immaculate dis-inflation’ that does not cause employment pain.”
This shift in market sentiment reflects the hope that the Federal Reserve’s approach to tightening policy will be balanced, fostering economic stability without adversely impacting employment.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice.
