Dollar Slips as Markets Cut Rate Hike Bets Amid Soft US Data
Global shares rose on Monday as investors scaled back bets on an imminent Federal Reserve rate hike following soft US economic data, including a decline in retail sales.
The STOXX benchmark of 600 big European companies gained 0.21%, while the MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5% and Japan's Nikkei edged 0.3% higher.
The dollar slipped towards two-month lows as investors became less convinced that the Fed would raise interest rates next month, with the CME Group's FedWatch tool now pricing in a 30% chance of a hike, down from about 50% a week earlier.
US Treasury yields fell after finishing mixed last week, and gold prices rose as investors sought safe-haven assets amid the uncertainty surrounding the Iran-Hormuz impasse and its potential impact on oil prices.