Global stock markets kicked off the week with gains as investors awaited key central bank policy meetings in the United States and Japan. Wall Street experienced a broad rally that concluded a volatile week, setting a positive tone for the markets.
Major European indices showed mixed results, with Germany's DAX rising by 0.3% and the CAC 40 in France slightly down by 0.1%. Meanwhile, London's FTSE gained 0.9%.
In Asia, Tokyo's Nikkei 225 surged by 2.1%, while Hong Kong's Hang Seng added 1.3%. The Shanghai Composite remained stable after reporting a 3.5% increase in industrial profits for the first half of 2024.
Investors are closely monitoring the upcoming Bank of Japan's monetary policy meeting, where an interest rate hike is anticipated. The U.S. Federal Reserve is expected to maintain its benchmark rate unchanged but may hint at potential rate cuts in September.
Market analysts are cautious yet optimistic, with expectations of increased volatility amidst macroeconomic uncertainties. The recent focus on inflation data has reinforced beliefs in future interest rate cuts.
In company news, Fuyao Glass faced a 5.9% decline in shares following a reported raid on one of its U.S. facilities. The company assured full cooperation with the investigation by U.S. authorities.
On Friday, U.S. stocks surged, with the S&P 500 posting its best day in seven weeks. Positive earnings reports from major companies like 3M fueled the market's optimism.
The tech sector saw a rebound, with the Russell 2000 index of smaller stocks gaining 1.7%. Despite initial losses, tech giants like Nvidia showed signs of recovery.
Oil prices experienced a slight dip, with U.S. benchmark crude falling to $77.00 per barrel and Brent crude at $80.18 per barrel. The euro also weakened against the dollar.
Overall, global markets are navigating through a mix of economic indicators and corporate performances, setting the stage for a potentially eventful week ahead.
