Global Markets Rise as Inflation Fears Subside

Global stock markets showed gains on Monday as concerns over inflation eased, reducing expectations of further interest rate hikes by the Federal Reserve. Tokyo's Nikkei 225 led the advance with a 2.4% rise, while other markets saw more modest movements. France's CAC 40 fell 1.1%, Germany's DAX inched up less than 0.1%, and Britain's FTSE 100 gained 0.5%. In Asia, Japan's Nikkei briefly surpassed 70,000 points for the first time in three months, while Australia's S&P/ASX 200 and Hong Kong's Hang Seng saw small gains.

Investors were particularly interested in shares related to artificial intelligence, with Tokyo Electron rising 5.5%, SoftBank Group gaining 3%, and Taiwan Semiconductor Manufacturing Co. climbing 3%. This week will bring key U.S. economic updates, including data on the services sector, unemployment, and consumer sentiment.

Oil prices fell, with U.S. crude dropping 1.7% to $89.57 a barrel and Brent crude declining 1.3% to $100.95 a barrel. The decrease in oil prices came amid uncertainty over the impact of the war with Iran on global oil markets. In currency trading, the U.S. dollar fell to 157.71 Japanese yen, and the euro dropped to $1.1204.

Last week's U.S. jobs report showed a slower hiring rate than expected, which markets interpreted as a signal that the Federal Reserve may pause its rate hikes. The S&P 500, Dow Jones Industrial Average, and Nasdaq composite all closed higher on Friday, with gains of 0.7%, 0.5%, and 1.2% respectively.