Global markets mixed as investors stay cautious

ISTANBUL

Global markets were mixed on Monday amid optimism that the Fed may start cutting rates this month, while investors are cautious ahead of US non-farm payrolls data to be announced on Friday.

The Fed is 90% likely to issue a 25-basis-point cut on Sept. 17, according to money market estimates. The bank is expected to make a total of two 25-basis-point cuts, with the next one scheduled for December.

The Trump administration continues to criticize the Fed as Treasury Secretary Scott Bessent said on Monday that the Fed should remain an independent bank, but it has made mistakes, while rejecting that the Trump administration's actions have made markets uncomfortable.

Meanwhile, Trump said India buys most of its oil and military products from Russia, with little from the US, noting that it was now too late to reduce the tariffs on New Delhi.

Precious metals continue to rise, driven by optimism surrounding rate cuts. Gold reached a record high of $3,508.92 on Tuesday, after rising for six consecutive trading days, and currently hovers around $3,496, up 0.6%.

Silver continued its rise on the fourth consecutive trading day, reaching $40.82 per ounce — its highest since September 2011.

The US 10-Year Bond stabilized at 4.25% on Tuesday, up 2 basis points, while the US dollar index rose to 97.9, increasing 0.2% after five consecutive days of decline. Brent crude oil is trading at $68.3 per barrel, up 0.4%.

The New York Stock Exchange was closed on Monday, as it was a federal holiday, Labor Day. American futures started Tuesday slightly lower.

Meanwhile, European stock markets experienced a positive trend on Monday, with investors focusing on the eurozone consumer data set to be released.

The European Central Bank has so far cut its three key policy rates by 100 basis points this year to reduce funding costs as part of its fight against inflation. The easing of funding constraints pressures was reflected in the eurozone manufacturing Purchasing Managers’ Index, as it crossed the growth threshold in August, reaching 50.7 points.

The FTSE 100 fell 0.1%, the FTSE MIB 30 0.51%, the CAC 40 0.05%, and the DAX 40 0.57% on Monday, while European futures started Tuesday mixed.

In Asia, stock markets, except for South Korea, were in the red.

Bank of Japan Vice Governor Ryozo Himino said on Tuesday that the bank should continue raising interest rates as the global economic uncertainty remains high, though the recent Japan–US trade agreement helped reduce some of it.

The Nikkei 225 fell 0.2%, the Shanghai Composite Index 1.1%, and the Hang Seng Index 0.7%, while the Kospi Index gained 0.8%.