Stocks rise on rate cut bets, political upheaval unsettles currencies globally

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Written by Sinad Caro and Elon John

NEW YORK/London (Reuters) – The global stock scale in MSCI rose on Monday, while the US Treasury’s revenues in dollars fell on the prospects for low interest rates and investors around the world with political uncertainty in countries of Japan, Indonesia to France and Argentina.

A heavy election defeat was sent to Argentine President Javier Miley’s party in the Argentine Buenos Paisu Province to the lowest level in the record.

In the afternoon trading, the bizo decreased by 3 % against the dollar, while the standard stock index [.MERV] 13.25 % decreased and the Argentine stock index circulated on US stock exchanges [.BKAR] It lost 18.6 %. Some international bonds in the country have witnessed its largest decline since it started trading in 2020 after a $ 65 billion restructuring deal.

Japanese Prime Minister Shigro Ishiba resigned on Sunday, where he entered into a long period of uncertainty at a fragile moment in the fourth largest economy in the world, prompting the yen to fall against the dollar.

Fourth Prime Minister France lost in less than two years, Francois Bayro, a confidence vote on Monday, and parliament fell in the government in the second largest economy in the eurozone due to its plans to tame the enlarged national debt and deepen the political crisis.

In Indonesia, the shares abandoned early gains to end more than 1 %, while Rubia rose after the expulsion of Finance Minister Sri Moliani Endrawati in the Council of Ministers.

American investors focus on easier monetary policy prospects, however, it seems that the work data in the United States of America has closed the case to reduce the interest rate in the Federal Reserve this month after Friday.

“We had a disappointing work report on Friday. This week, everything related to inflation,” said Anthony Sagapin, Suspery of the Market Strategy at Ameiprise.

“The markets are a kind of looking beyond some weakest economic data because they probably mean that the Federal Reserve will have more space to reduce interest rates this year.”

The global stock index rises

The MSCI scale rose around the world 3.67 points, or 0.38 %, to 959.38.

Earlier, the Stoxx 600 Pan-European is closed 0.52 %.

“The weakness of the dollar against most currencies enhances the returns in foreign stock indicators,” said Jin Goldman, the Carera Investment Management in the United States.

“There are concerns from countries separately. But a lot of news is priced in France and the prime minister in Japan is replaced by more friendly prime minister in the market.”

At Wall Street, Dow Jones Industrial Malee 114.09 points, or 0.25 %, closed to 45,514.95, S&P rose 500 13.65 points, or 0.21 %, to 6,495.15, and the nasdaq vehicle increased 98.31 points, or 0.45 %, to 21,798.70 To register.

At currencies, the US dollar spanned losses on Friday after the job report reduced prices, while the yen decreased widely after the Japanese political news.

The dollar index, which measures greenery against a basket of currencies including yen and euros, decreased by 0.42 % to 97.46. The euro rose 0.36 % on the dollar to $ 1.1759.

Against the Japanese yen, the dollar strengthens 0.04 % to 147.44.

The British pound has strengthened 0.29 % to $ 1.3545, while strengthening the Canadian dollar by 0.17 % against Greenback to 1.38 Canadian dollars and strengthening the Swedish crown 0.75 % against the dollar.

In US Treasury bonds, the possibility of interest rates and optimism that US inflation data due later this week will be benign to pay returns for the fourth consecutive day, to its lowest level since April.

The return on standard notes for 10 years decreased 3.9 basis points to 4.047 %, from 4.086 % late on Friday, while bond returns for 30 years decreased 7.7 basis points to 4.697 % from 4.774 %.

The return on notes has decreased for two years, which usually moves with the interest rate expectations for the Federal Reserve, the basis point 1 to 3.497 %, from 3.507 %.

Oil prices regained some losses last week, after the increase in OPEC+production was considered modest and due to concerns about the possibility of more sanctions on Russian crude.

American crude settled 0.63 %, or 39 cents, at $ 62.26 a barrel and Brent, ending at $ 66.02 a barrel, an increase of 0.79 % or 52 cents a day.

Gold rose to $ 3,600 an ounce for the first time on Monday, as the soft American employment data strengthened the expectations that the Federal Reserve boosts interest rates.

The gold stain increased 1.37 % to $ 3,635.26 an ounce. Gold futures in the United States increased by 0.66 % to $ 3,637.10 an ounce.

(Sinad Caro, Rodrigo Campus in New York, Anour Banderaji in Singapore and Lake John in London: edited by Helen Popper, Kirsten Donovan, Kevin Levy, Ken Ferres and Margoreta Choi)

2025-09-08 00:07:00

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