Global stock markets experienced a rise on Monday, driven by political developments in France and Japan, alongside mixed economic data. The price of oil increased after OPEC+ agreed to boost supplies at a slower pace, according to analysts. Meanwhile, gold reached a new record high above $3,600 an ounce, benefiting from its safe-haven status.
The resignation of Japan’s Prime Minister, Shigeru Ishiba, caused significant movements in the market, with the yen declining and stocks making sharp gains. Tokyo’s Nikkei stock index closed up 1.5 percent, with exporters benefiting from the yen’s slide. Japanese bond yields also rose after Ishiba announced his decision to step down after less than a year in power.
In Europe, the Paris stock market climbed, and the euro stabilized as French Prime Minister Francois Bayrou faced a confidence vote in parliament. The European Central Bank is expected to maintain interest rates, with inflation under control and US tariff tensions easing. Friday’s US jobs data has reinforced expectations of a Federal Reserve rate cut later this month.
Official data showed that falling Chinese exports to the US were offset by increased exports to Southeast Asia and Europe. Trade tensions between Beijing and Washington have been volatile this year, with both sides imposing escalating tariffs. Germany, Europe’s largest economy, reported a drop in exports to the US in July to their lowest level since 2021.
The OPEC+ alliance agreed to increase oil production by 137,000 barrels a day from next month, following a previous increase of 2.2 million barrels per day. Key stock market figures at around 1020 GMT included the London FTSE 100 up 0.2 percent, the Paris CAC 40 up 0.4 percent, and the Tokyo Nikkei 225 up 1.5 percent. The euro and pound exchanged at $1.1725 and $1.3511, respectively, while Brent North Sea crude oil rose 2.0 percent to $66.80 per barrel.
These developments indicate a complex interplay of economic and political factors influencing the global market. As the situation continues to unfold, investors and policymakers will be closely watching the next steps in these key regions. The outcome of the French confidence vote and the Federal Reserve’s interest rate decision will be crucial in determining the trajectory of the global economy.
