Global markets begin new week positive

ISTANBUL

Global markets began Monday on a positive note, with all eyes on US labor market data, and the Fed's expected rate cut this month is adding to risk appetite.

Job openings fell to 7.181 million in July, down from the previous month and below market expectations of 7.38 million, according to the Job Openings and Labor Turnover Survey.

The number of job openings in the US reached its lowest since September 2024.

Nonfarm payrolls increased 22,000 in August, short of estimates, while the US unemployment rate rose to 4.3%, the highest since October 2021.

The employment data showed signs of a cooling labor market. The market is expecting three rate cuts in light of the data, each in September, October, and December.

The S&P 500 fell 0.32%, the Nasdaq 0.03%, and the Dow Jones 0.48% on Friday, but US futures started Monday on a positive note.

Last week, gold reached a new high of $3,600 per ounce, boosted by expectations of rate cuts, but it is down 0.1% on Monday at $3,584.

The US 10-year bond fell 7 basis points to 4.09% on Friday before stabilizing at 4.1% on Monday.

The US Dollar Index closed Friday down 0.5% at 97.8% and started Monday up 0.1% at 97.9%.

Brent crude oil increased 1% at the start of Monday, trading at $66.1 per barrel.

In Europe, all eyes turn to the war in Ukraine as the developments are being followed closely amid selling pressure on European stock markets.

EU Council President Antonio Costa said on Friday that the work is underway to issue new sanctions against Russia and send a delegation to the US.

Ukrainian President Volodymyr Zelenskyy said he is in discussions with European allies about deploying thousands of foreign troops to Ukraine.

The FTSE 100 fell 0.09%, the FTSE MIB 30 0.91%, the DAX 40 0.73%, and the CAC 40 0.31% on Friday. European futures started Monday positively.

As for Asia, Fed’s rate cut optimism influenced market direction, as well as data coming out of the region, despite political risks.

Japanese Prime Minister Shigeru Ishiba announced his resignation as leader of the Liberal Democratic Party (LDP) following the July election results.

Japanese stocks rallied as the country’s growth rate was upwardly revised from 1% to 2.2% in the second quarter of the year.

Meanwhile, China’s foreign trade balance reached $102.3 billion, above estimates, according to data on Monday.

The Nikkei 225 rose 1.5%, the Shanghai Composite Index 0.2%, the Hang Seng Index 0.4%, and the Kospi Index 0.1% near the close on Monday.