Global markets extended gains after a softer U.S. payrolls print and signs of a less combustible situation in the Middle East, sending benchmark yields lower and fueling demand for haven assets.
The S&P 500 climbed 3.58% last week and is trading just below all-time highs, supported by easing inflation worries after the weaker-than-expected jobs report. The data helped push the U.S. 10-year Treasury yield down 9 basis points to about 4.651%, while the dollar index lost roughly 0.2% as investors pared bets on further Fed hawkishness.
Gold leapt, rising about 7.5% to near USD 4,341 an ounce as the combination of lower real yields and risk-off positioning boosted demand for the metal.
Geopolitical signals also weighed on markets. President Donald Trump has implied he would favor economic pressure over renewed military action against Iran, comments that, along with a calmer tone from Tehran, helped relieve some immediate risk premia tied to the Strait of Hormuz.
Economic forecasts have been revised higher in Europe after stronger-than-expected growth in the second quarter. A Bloomberg survey of economists now pegs Eurozone growth at 0.8% in 2026, up from a prior estimate of 0.5%, reflecting resilient activity that has tempered recession fears.
Regional equity moves were broadly positive: European shares rose about 0.4%. In Asia, Japan and Hong Kong advanced close to 1%, while mainland Chinese markets traded near flat. U.S. futures pointed to a broadly stable open. Oil prices firmed modestly, with Brent crude up about 1% to roughly USD 85 a barrel.
Leave a Reply