Global stock markets are volatile! Pressure from war and rising oil prices dragged the Dow Jones down, while markets are watching US inflation figures.
U.S. stock markets were closed for Labor Day, with futures declining amid escalating tensions in the Middle East and rising crude oil prices potentially impacting inflation. Investors are also watching for the release of U.S. CPI and PPI data this week, which will influence the Federal Reserve's interest rate decisions.
U.S. stock market futures fell amid concerns over war and rising oil prices pushing inflation.
U.S. stock markets were closed on Monday (September 7, 2569) in observance of Labor Day. However, U.S. stock index futures fell amid concerns about a potential conflict between the U.S. and Iran, as well as trade tensions between the U.S. and Canada, following Canada's preparations to impose retaliatory tariffs.
Rising oil prices have fueled concerns that inflation will accelerate, potentially pressuring the Federal Reserve to raise interest rates at next week's meeting. The CME FedWatch tool indicates that investors expect about a 60% chance the Fed will raise rates by 0.25%.
European stock markets showed mixed movements as investors assessed the direction of interest rates.
European stock markets closed flat to slightly higher on Monday as investors remained cautious, awaiting new developments. Markets are assessing the likelihood of further interest rate hikes by the European Central Bank (ECB), amid continued pressure from high oil prices.
Geopolitical risks in the Middle East remain a major factor weighing on global investor confidence, even though some indices in the region are still receiving sporadic support.
- STOXX 600 Index Closed at 649.90 points, up 0.02 points (+0.00%)
- DAX German stock market index Closed at 26,006.53 points, down 39.87 points (-0.15%)
- CAC 40 Index of the French stock market Closed at 8,306.15 points, up 27.38 points (+0.33%)
The UK stock market edged lower, following the global trend.
The London stock market closed slightly lower on Monday , pressured by concerns over the conflict in the Middle East and rising government bond yields worldwide.
Investors in the UK market remain cautious ahead of key US economic data releases and several central bank meetings this week.
- FTSE 100 Index UK Stock Market Closed at 10,822.13 points, down 8.96 points (-0.08%)
Oil prices surged to their highest level in six weeks following retaliatory attacks between the United States and Iran.
Global crude oil prices rose to their highest level in six weeks after the United States and Iran launched retaliatory attacks over the weekend, including reports of an attack on Saudi Aramco oil refineries in Saudi Arabia.
The protracted conflict, now in its seventh month, has raised serious concerns about disruptions to the oil supply in the Middle East and driven fuel prices higher.
- WTI Crude Oil Price It closed at $93.10 per barrel, up 1.8%.
- Brent crude oil price It closed at $97.73 per barrel, up 1.5%.
Gold prices weakened on expectations that the Fed will raise interest rates.
Global gold prices fell on Monday, pressured by stronger-than-expected U.S. employment figures that increased the likelihood of a Federal Reserve interest rate hike to control inflation.
Investors are still watching for the release of the U.S. Producer Price Index (PPI) and Consumer Price Index (CPI) later this week for greater clarity on the Federal Reserve's monetary policy.
- Spot Gold Price Closed at $4,405.47/ounce, down 0.5%.
- Gold price on Comex market (December delivery) Closed at $4,452.20/ounce, down 0.5%.
The dollar weakened despite expectations of increased interest rate hikes.
The dollar remained weak against major currencies despite rising expectations of a Federal Reserve interest rate hike, amid concerns about U.S. debt burden and the strengthening of the Japanese yen.
Meanwhile, investors anticipate that several central banks, such as the European Central Bank (ECB) and the Bank of Japan (BOJ), are also likely to raise interest rates, which helps to narrow the divergence in monetary policy.
- Euro/Dollar Closed at $1.1618
- Dollar/Yen Closed at 155.88 yen, down 0.2%.
- Pound/Dollar Closed at $1.3519
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