Shares Rally as Rate Hike Bets Plummet Amid Soft US Data
Global shares rose on Monday as investors reduced bets for an imminent rate hike from the Federal Reserve, following a run of soft US economic data. A hike next month is now priced at 30%, down sharply from about 50% a week earlier, according to the CME Group's FedWatch tool.
The STOXX benchmark of 600 big European companies inched up 0.04%, led by resources stocks as gold prices advanced. In the US, Nasdaq futures firmed 0.5% and S&P futures 0.2%. The dollar fell to its lowest level since June as a result.
US retail sales posted the first decline in nine months in July, while consumer sentiment soured by more than expected. The main data point this week is the August S&P Purchasing Managers' Indices (PMIs) to gauge whether the mid-year acceleration in US business activity can be sustained.