Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
Trump Meets Mexico and Canada Leaders After 2026 World Cup Draw Amid USMCA Tensions 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Austria’s AA Credit Rating Affirmed as Fitch Highlights Stable Outlook 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
Fed Meeting Sparks Division as Markets Brace for Possible Rate Cut 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Asian markets held firm on Monday despite rising geopolitical risks from the Israel-Iran conflict, which pushed oil prices higher and added uncertainty ahead of several key central bank meetings. Brent crude rose $1.11 to $75.34 a barrel, while U.S. crude added $1.05 to reach $74.03, extending last week’s 13% surge. The ongoing conflict raises fears of supply disruptions through the Strait of Hormuz, a crucial global oil chokepoint.
While global tensions mounted, investors remained composed. MSCI’s Asia-Pacific index excluding Japan edged up 0.1%, with Japan’s Nikkei climbing 0.8% and South Korea gaining 0.5%. U.S. futures showed modest gains, with S&P 500 and Nasdaq futures up 0.1% and 0.2%, respectively.
Focus now turns to the Federal Reserve’s meeting this week. With oil-driven inflation risks rising, markets expect no change to the current 4.25%-4.5% rate band. Analysts, including JPMorgan’s Michael Feroli, anticipate the Fed’s updated "dot plot" will reflect only one rate cut in 2025, down from the previously forecasted two. Still, traders are betting on rate cuts starting in September, with two expected by year-end.
U.S. economic data, including retail sales on Tuesday and weekly jobless claims on Wednesday, will also influence sentiment. Meanwhile, European markets were slightly pressured due to energy import reliance, with EUROSTOXX 50 and DAX futures dipping.
The dollar gained 0.3% against the yen, while the euro slipped 0.1%. Oil-exporting currencies like the Norwegian crown hit multi-year highs. Gold rose 0.5% to $3,450 per ounce on safe-haven demand. Several central banks, including those in Norway, Sweden, Switzerland, and Japan, are set to decide on interest rates this week, adding to the market’s cautious yet resilient tone.
