Global Markets Rally as Weaker US Data Dampens Rate-Hike Bets
Global markets rose on Monday after weaker-than-expected US economic data reduced bets on an imminent interest-rate hike by the Federal Reserve.
The CME Group's FedWatch tool showed a 30% probability of a rate hike in September, down from around 50% just a week earlier. European stocks opened higher, with the STOXX 600 rising 0.21%, and Asian markets also gained, led by Chinese blue-chip stocks.
The weaker US data included an unexpected fall in retail sales, marking their first decline in nine months. The softer numbers added to concerns about consumer spending, which could limit the Fed's ability to raise rates soon.
US Treasury yields moved lower on Monday, reflecting the changing view on Fed policy. When investors expect fewer or later interest-rate hikes, bond yields can come under pressure as markets adjust their expectations.