Global stock markets edged higher on Monday, as investors balanced political upheaval in France and Japan with growing hopes of a US interest rate cut.
“Political uncertainty is making waves on markets at the start of the week, but sentiment remains largely upbeat,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
In Japan, markets saw sharp moves following the resignation of the Prime Minister, which sent the yen tumbling, stocks climbing, and government bond yields rising.
In Europe, French markets gained ground despite Prime Minister Francois Bayrou facing a confidence vote in parliament that was widely expected to end his nine-month tenure. Bayrou surprised even his allies by calling the vote in an attempt to break a deadlock over his austerity budget.
In a speech to lawmakers, Bayrou described France’s debt burden as “life-threatening”, warning that failing to act would have been “the biggest risk.”
Elsewhere, the European Central Bank is expected to hold interest rates steady this week, with inflation under control and US tariff tensions easing.
By the close, major indices were broadly higher: Cac 40 (France): +0.8%, Dax (Germany): +1.0% and S&P 500 (US): +0.3%
The gains suggest that, for now, investors are looking past political instability and focusing on the prospect of looser monetary policy to support markets.
FTSE 100 Edges Higher as Gold and Oil Prices Gain
The FTSE 100 closed slightly higher on Monday, supported by stronger gold and oil prices, which helped lift sentiment in the commodities and energy sectors.
The FTSE 100 index ended the session up 0.1% at 9,221.14, while the FTSE 250 rose 0.5% to 21,684.45. The AIM All-Share also gained 0.5% to 769.73.
The moves came as gold prices surged, climbing to $3,644.14 an ounce, up from $3,589.49 on Friday, amid expectations of a potential US interest rate cut and rising geopolitical uncertainty.
Oil prices also strengthened, providing further support to the London market’s heavyweight energy stocks, contributing to the FTSE’s modest gains.
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