Global stocks began the week on a positive note, driven by growing expectations of a Federal Reserve rate cut in December. Although policymakers remain divided on the issue, investors were encouraged by recent comments from New York Fed chief John Williams, who said there is still “room for a further adjustment” at the bank’s December 9‑10 policy meeting. Fed funds futures now place the probability of a rate cut at 57%, up from less than 30% a week ago. This optimism lifted market sentiment: MSCI’s broadest index of Asia‑Pacific shares outside Japan rose 0.4%, South Korea’s tech‑heavy Kospi gained 0.7%, and Nasdaq and S&P 500 futures advanced 0.64% and 0.45%, respectively.
Later in the week, U.S. retail‑sales and producer‑price data are expected to shed more light on the economy’s health, while British finance minister Rachel Reeves will unveil a highly anticipated budget that could influence market trends. The yen slipped 0.2% to 156.72 per dollar, staying near a 10‑month low. Asian markets mostly rose: Hong Kong and Seoul jumped over 1%, and Sydney, Singapore, Wellington, and Taipei also posted gains. Shanghai and Manila retreated, and Tokyo was closed for a holiday.
Market mood remains cautious, with uncertainty weighing on riskier assets such as bitcoin, which hovers around $87,000. The recent surge in tech shares, fueled by the AI boom, has sparked concerns about a possible correction; investors fear that the large inflows into the sector may have been excessive and that profit realization could take time. The Federal Reserve’s upcoming interest‑rate decision will be closely watched for its impact on market direction.
Key figures at 02:30 GMT showed the Hang Seng Index up 1.4% at 25,568.08, while the Shanghai Composite fell 0.1% to 3,829.71. The dollar‑yen rate was 156.70 yen, and the euro‑dollar rate slipped to $1.1515. West Texas Intermediate crude declined 0.2% to $57.93 per barrel, and Brent North Sea crude also fell 0.2% to $62.44 per barrel.
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