Mixed Global Markets as Fed Rate Hike Expectations Ease

Global markets showed mixed movements as investors adjusted their expectations for a U.S. Federal Reserve rate hike this month, influenced by recent economic data. Wall Street futures dipped, while major North American markets had closed higher on Friday. TSX futures remained relatively stable. Analyst Ipek Ozkardeskaya from Swissquote noted that inflation, though still high, did not show alarming acceleration, and jobs data appeared softer, easing near-term Fed hike expectations and providing comfort for broader risk assets.

European markets saw modest gains, with the pan-European STOXX 600 up 0.16% and Britain’s FTSE 100 rising 0.17%. However, Germany’s DAX slid 0.13% and France’s CAC 40 fell 1.05%. In Asia, Japan’s Nikkei closed 2.4% higher, while Hong Kong’s Hang Seng climbed 0.28%.

Oil prices fluctuated amid increased Middle Eastern crude exports and the G7’s pledge to boost supplies, though concerns over US-Israeli war-related disruptions limited significant selling. Brent crude futures fell 0.2% to $102.00 a barrel, and West Texas Intermediate (WTI) crude dropped 0.86% to $90.33. Analyst Tim Waterer of KCM Trade noted that the G7’s strategic reserves decision and rising Saudi export volumes were easing immediate supply anxieties, although risks of further infrastructure damage persisted.

In other commodities, spot gold rose 0.6% to $4,165.49 an ounce, and U.S. gold futures for December delivery gained 0.8% to $4,194.60. The Canadian dollar strengthened against the U.S. dollar, trading between 69.95 and 70.31 US cents, despite a 3.02% decline over the past month. The U.S. dollar index gained 0.25% to 102.19, while the euro and British pound both declined. The yield on the U.S. 10-year note remained little changed at 5.282%.