Global stock markets rose on Monday as the U.S. dollar softened against most currencies, despite gaining ground against the Japanese yen, driven by political turbulence and economic signals, Reuters reported. Investors navigated a complex landscape marked by instability in Argentina, Japan, France, and Indonesia, while anticipating a potential U.S. Federal Reserve rate cut.
In Argentina, President Javier Milei’s party suffered a significant election loss in Buenos Aires, pushing the peso to a historic low with a 7.5% drop, triggering a 10% plunge in local stocks. Japan faced similar uncertainty after Prime Minister Shigeru Ishiba’s resignation, weakening the yen as markets speculated on a more lenient successor. France’s economic outlook dimmed with Prime Minister François Bayrou facing a possible defeat, raising fears of stagnation in the eurozone’s second-largest economy. In Indonesia, stocks slipped despite a stronger rupiah following the removal of Finance Minister Sri Mulyani Indrawati.
The prospect of a Fed rate cut, spurred by disappointing August labor data, lowered Treasury yields for the fourth straight day, boosting equities. MSCI’s global stock index climbed 0.35% to 959.07, while Europe’s STOXX 600 rose 0.28% and emerging market stocks gained 0.58%. In Asia, MSCI’s Asia-Pacific index outside Japan advanced 0.67%, and Japan’s Nikkei soared 1.45% to 43,643.81. U.S. markets showed mixed results, with the S&P 500 up 0.31% and Nasdaq rising 0.82%, though the Dow Jones dipped slightly, as investors awaited key economic updates.
Oil prices edged up, and gold prices exceeded $3,600 per ounce, fueled by rate-cut expectations. Reuters noted that the dollar’s decline enhanced returns on international stocks, balancing optimism with political risks. This global rally aligns with Nigeria’s NGX gaining N263 billion today, reflecting a 35.43% year-to-date rise, amid a 67.12% surge in capital importation to $5.64 billion in Q1 2025, though naira volatility (N1,560/$1) and 21.88% inflation in July temper local gains.
