European markets extend rally on hopes for peace
On Monday, European stock exchanges opened higher, maintaining the momentum set last week. Investor optimism is fueled by speculation over a potential peace agreement between Russia and Ukraine, while attention shifts to upcoming US inflation data and the forthcoming tariff negotiations.
STOXX 600 nears summer highs
By 07:08 GMT, the pan-European STOXX 600 index added 0.3%, coming close to its highest level since late July.
Political signals from Alaska
Donald Trump, who is scheduled to meet Vladimir Putin in Alaska on Friday, stated that a possible agreement could involve a territorial exchange that would benefit both sides.
German defense companies under pressure
The wave of optimism regarding a peaceful settlement has had a negative impact on defense contractors' shares. Rheinmetall fell by 3.7%, while Renk and Hensoldt declined by 3% and 2.1%, respectively.
Energy sector: sharp drop in Orsted
Shares of Orsted plunged by 22% after the Danish offshore wind farm operator announced plans to issue shares worth 60 billion kroner, equivalent to 9.4 billion US dollars. The company attributed the move to challenging conditions in the US offshore wind market.
Technology sector: deals on the horizon
Shares of Germany's Northern Data dropped by nearly 3%. US-based video platform and cloud provider Rumble is considering acquiring the company for around 1.17 billion US dollars. Northern Data specializes in cloud solutions in the field of artificial intelligence.
Asian markets rise ahead of key US inflation data
Trading in Asia ended higher on Monday, supported by strong corporate earnings, particularly in the technology sector. Investors are keenly awaiting the release of US inflation statistics, which could shape the future trajectory of the greenback and bond yields.
Nikkei futures near all-time high
The Japanese stock market was closed for a national holiday, but Nikkei futures jumped to 42,380 points. This surge signals that the index may test its absolute record of 42,426 points in the coming days.
European futures open with gains
EUROSTOXX 50 futures added 0.2%, FTSE gained 0.1%, and DAX rose by 0.2%.
US inflation as decisive factor for Fed
On Tuesday, the US Consumer Price Index report will be released. Economists forecast that higher tariffs will push core inflation up by 0.3%, bringing the annual figure to 3.0%, well above the Federal Reserve's 2% target.
Rate cut bets in question
If inflation exceeds expectations, the market may begin to doubt the likelihood of a Fed rate cut in September. However, analysts believe that it would take a significantly high reading to shift forecasts, given the current slowdown in employment growth.
Markets almost certain of September rate cut
Financial markets currently price in about a 90% probability of monetary policy easing in September, with expectations for at least one more rate cut before the end of the year.
Miran may have time to vote for rate cut
Steven Miran, selected by Donald Trump to head the Federal Reserve, could take the chair in time to support the September rate cut. His candidacy is being considered as part of a broader list of around ten contenders.
Corporate earnings push prices higher
Expectations for cheaper credit have coincided with a period of strong corporate reporting. According to Bank of America, 73% of companies have already beaten earnings forecasts, well above the medium-term average of 59%, while 78% have surpassed revenue projections.
US indices close to record highs
S&P 500 and Nasdaq futures added 0.1% each on Monday, moving close to their all-time highs.
Mixed reaction to semiconductor news
Analysts are divided over a Financial Times report claiming that Nvidia and AMD have allegedly agreed to transfer 15% of their revenue from chip sales in China to the US government in exchange for export licenses.
Asian markets rise as China posts mixed data
The broad MSCI Asia-Pacific index excluding Japan rose by 0.3%. The South Korean market remained unchanged after last week's 2.9% gain. Chinese blue chips climbed by 0.5%: July consumer inflation increased, but producer prices continued to decline, signaling the export of deflation beyond the country's borders.
Investors await industrial and consumer demand data
This Friday, industrial production and retail sales figures for July will be released. Economists expect a moderate slowdown in growth after a sharp surge the previous month.
Currency market: calm amid low activity
Trading in currency markets was subdued, partly due to the absence of activity from Japan. The US dollar index slipped to 98.066 after falling by 0.4% the week before. The euro rose by 0.2% to $1.1670, recovering from a recent low of $1.1392. The greenback weakened against the yen to 147.50, facing resistance near 147.90.
Australian dollar under pressure ahead of central bank decision
The Australian currency fell to $0.6520 on the eve of the Reserve Bank of Australia meeting, where a key rate cut is expected. In July, the regulator unexpectedly refrained from easing policy, awaiting fresh inflation data. The new figures proved favorable, and investors are now fully pricing in a quarter-point rate cut to 3.60%.
Gold and oil move lower
In commodity markets, gold fell by 0.6% to $3,378 per ounce after last week's sharp volatility triggered by news of US plans to impose a 39% tariff on certain types of gold bars, a key export product for Switzerland. On Friday, prices dropped further after the White House announced preparations for an executive order clarifying the country's position on these tariffs. Brent crude dipped by 0.6% to $66.22 a barrel, while US WTI declined by 0.7% to $63.44.
