Global Markets Rise as Inflation Fears Subside

Global stock markets showed gains on Monday as concerns about inflation eased, reducing the likelihood of further interest rate hikes by the Federal Reserve. Tokyo's Nikkei 225 index led the advance with a 2.4% rise, briefly surpassing 70,000 points for the first time in three months. However, gains were modest elsewhere, with France's CAC 40 dropping 1.1% and Germany's DAX barely changing. In the U.S., futures for the S&P 500 and Dow Jones Industrial Average dipped slightly by 0.1%.

Asian markets saw mixed results, with Japan's Nikkei 225 climbing 2.4% to close at 69,946.86. Australia's S&P/ASX 200 remained almost unchanged, while Hong Kong's Hang Seng gained 0.3%. Investors showed particular interest in artificial intelligence-related stocks, boosting shares of Tokyo Electron by 5.5% and SoftBank Group by 3%. Taiwan Semiconductor Manufacturing Co. also rose by 3%.

This week will be crucial for U.S. economic data, with updates on the services sector, unemployment, and consumer sentiment expected. Last week's jobs report, which showed a slower-than-expected hiring pace, helped alleviate inflation worries. This has led markets to believe the Federal Reserve may hold off on further rate increases after its recent hike aimed at curbing rising living costs.

Energy markets saw a decline, with U.S. crude oil falling 1.7% to $89.57 per barrel and Brent crude dropping 1.3% to $100.95. Oil prices have been volatile due to uncertainties surrounding the impact of the war with Iran on global oil supply. In currency trading, the U.S. dollar weakened slightly against the Japanese yen and the euro.