Global Markets Gain Ground at Start of Week; Dollar Rises Ahead of Inflation Figures
By Dow Jones Newswires StaffU.S. stock futures rose slightly. Gold prices increased amid weak risk appetite and the dollar recovered a little ground as investors look ahead to key U.S. inflation data later this week, which should offer some clues as to the pace of future cuts to interest rates by the Federal Reserve. The yield on French government bonds rose after S&P Global Ratings cut its rating on the country, a decision that came earlier than expected.U.S. stock futures for the S&P 500 were up 0.53%. Futures for the Dow Jones Industrial Average rose by 0.52% and Nasdaq futures also gain 0.52%.European indexes mostly moved higher, with Germany's DAX gaining 1% and the FTSE 100 up 0.3%. France's CAC 40 rose 0.6%, with luxury company Kering among Europe's biggest winners in early trading after the company said it would sell its beauty business to L'Oreal for around $4 billion.Asian shares closed higher, with Japan hitting record highs as domestic political concerns eased over the formation of a new government. Elected Liberal Democratic Party leader Sanae Takaichi is set to become Japan's next prime minister, lifting the Nikkei 3.4%. South Korea also rose for a fourth consecutive session, with the Kospi up 1.8%. In China, investors bought into recent session weakness on expectations Beijing might boost stimulus after Monday's data showed economic growth slowed to its weakest pace in a year. ChiNext led gains, up 2.0%, followed by Shenzhen and Shanghai, up 1.0% and 0.6%, respectively. The Hang Seng Index gained 2.5%.The dollar edged higher after falling at the end of last week due to concerns about regional banks and bets on rate cuts. Sterling was flat at $1.3426, while the euro rose 0.1% to $1.1666. The DXY dollar index rose 0.1% to 98.482.Bitcoin rose as tensions between the U.S. and China showed signs of easing, boosting risk appetite. The digital asset rose 2.2% to $111,281, LSEG data showed.Eurozone yields increased, tracking moves in U.S. Treasury yields. The 10-year OAT yield rose 1.5 basis points to 3.376%, while the 10-year Bund yield was up 1.3bps at 2.592%, according to Tradeweb. Investors were likely spooked by S&P's decision to downgrade its rating on France, deviating from the pre-announced schedule. The 10-year OAT-Bund yield spread rose to 78.7bps. U.S. 10-year Treasury yields were up 1.3bps at 4.021%. U.K. 10-year gilt yields were little changed at 4.535%.Oil prices continued to slide on concerns about a supply glut. Brent crude fell 0.8% to $60.78 a barrel and WTI dropped 0.9% to $56.65 a barrel.Gold prices remain supported by safe-haven sentiment amid global tensions and dark economic clouds. In early trade, futures in New York were up 0.9% to $4,251 a troy ounce.Write to Barcelona editors at [email protected]