European and Asian stock markets posted strong gains on Monday, while gold surged to a record near $3,820 an ounce. The rally followed the release of U.S. inflation data that met expectations and eased worries about President Donald Trump’s latest tariff proposals. The personal consumption expenditures (PCE) index, the Fed’s preferred inflation gauge, rose to 2.7 % in August from 2.6 % in July. Although the reading remains well above the Fed’s 2 % target, it aligned with forecasts, giving the central bank room to consider another rate cut.

Investors are also monitoring Washington, where lawmakers have yet to reach a funding deal to keep the government operating. The impasse could delay the publication of key economic data. Meanwhile, the dollar slipped against its major rivals and oil prices fell on speculation that OPEC+ may increase output, raising concerns of a glut. The decline follows last week’s rally, which was driven by heightened tensions between NATO members and Russia and the prospect of fresh sanctions on Moscow.

U.S. stock futures point to a higher open as markets await Friday’s non‑farm payroll report for clues on the Federal Reserve’s next move. In corporate news, GSK shares rose 2.5 % in London after the British pharmaceutical giant announced that longtime chief executive Emma Walmsley will be succeeded by its chief commercial officer in January. Lufthansa disclosed plans to cut 4,000 jobs—about four percent of its workforce—after profits fell amid mounting headwinds.

Key indices advanced: London’s FTSE 100 gained 0.6 %, Paris’s CAC 40 rose 0.1 %, and Frankfurt’s DAX added 0.2 %. In Asia, Hong Kong’s Hang Seng Index jumped 1.9 % while Tokyo’s Nikkei 225 slipped 0.7 %. The euro and pound both strengthened against the dollar, with the euro at $1.1721 and the pound at $1.3433.

As the global economy navigates trade tensions and monetary‑policy decisions, investors remain focused on developments that could shape financial markets. The record high in gold and the broad equity gains underscore the ongoing uncertainty and the search for safe‑haven assets amid economic volatility.