Global Markets Rise as Wall Street Approaches Record Highs

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Global stock markets mostly gained on Tuesday, building on momentum from Wall Street’s strong performance, which has edged closer to record highs following a volatile summer.

In Europe, France’s CAC 40 rose 0.3% in early trading to 7,525.54, while Germany’s DAX also climbed 0.3% to 18,468.96. However, Britain’s FTSE 100 saw a decline of 0.5%, slipping to 8,312.21. Investors are keeping a close watch on the eurozone inflation data scheduled for release later in the day, which could provide further direction to markets.

In the U.S., futures pointed to a stable start, with the S&P 500 futures up 0.1% and the Dow Jones Industrial Average futures remaining mostly unchanged.

Asia saw mixed results, with Japan’s Nikkei 225 rebounding 1.8% to close at 38,062.92, recovering from a similar 1.8% loss the previous day. Meanwhile, the yen, which had approached 145 against the U.S. dollar on Monday, pulled back slightly, trading at 146.94 on Tuesday.

China maintained its benchmark lending rates on Tuesday, leaving the one-year loan prime rate at 3.35% and the five-year LPR at 3.85%. This decision follows a series of interest rate cuts last month aimed at bolstering economic growth. The one-year LPR is the benchmark for most corporate loans, while the five-year LPR serves as a reference for mortgages.

Hong Kong’s Hang Seng index fell 0.3% to 17,511.08, and the Shanghai Composite Index dropped 0.9% to 2,866.66.

In Australia, the S&P/ASX 200 edged up 0.2% to 7,997.70 after the Reserve Bank of Australia released the minutes from its August meeting. The RBA left its cash rate target unchanged at 4.35%, emphasizing that controlling inflation remains its top priority. The central bank noted that while a reduction in the cash rate is unlikely in the short term, future adjustments cannot be ruled out.

South Korea’s Kospi also saw gains, rising 0.8% to 2,696.63.

On Wall Street, the S&P 500 surged 1% on Monday, marking its eighth consecutive day of gains and closing at 5,608.25. This rally has brought the index to within 1% of its all-time high, after it had dropped nearly 10% below that level earlier this month. The Dow Jones Industrial Average increased 0.6% to 40,896.53, and the Nasdaq Composite jumped 1.4% to 17,876.77.

As markets await a key speech from Federal Reserve Chair Jerome Powell on Friday, Treasury yields remained steady. The 10-year Treasury yield dipped slightly to 3.87%, down from 3.88% late last week. The speech, set to take place in Jackson Hole, Wyoming, has historically been a platform for significant policy announcements. While expectations are modest this time, many investors anticipate that the Fed will begin cutting interest rates next month for the first time since it started aggressive hikes in early 2022.

In the energy market, U.S. benchmark crude prices fell by 63 cents to $73.03 a barrel, while Brent crude, the international standard, rose 91 cents to $76.75 a barrel.

Meanwhile, the euro inched up to $1.1086 from $1.1085.

Source: AP