Global stocks begin the week on positive note

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1%

Global stocks began an event-filled week on the front foot on Monday. Markets were gearing up for potential catalysts, including the release of U.S. retail sales and producer prices data due later in the week, while British finance minister Rachel Reeves is also set to unveil her highly anticipated budget.

Geopolitical developments were also front and centre, with the US and Ukraine set to continue work on a plan to end the conflict with Russia after agreeing to modify an earlier proposal that was widely seen as too favourable to Russia.

That kept a lid on oil prices on hopes a deal could free up more Russian supply through an easing of sanctions.

After a rough ride for global equity markets last week driven in part by worries over high tech valuations, Monday’s session in Asia gave stocks a much-needed reprieve.

Trading was thinned with Japan markets closed for a holiday, but MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1% and tech-heavy Kospi index was up 0.15%.

U.S.’ Nasdaq futures and S&P 500 futures gained 0.8% and 0.55%, respectively, while EUROSTOXX 50 futures added 0.7%. FTSE futures rose 0.53%, while DAX futures edged 0.78% higher.

The latest boost came after remarks from central bank policymaker John Williams, who said on Friday that interest rates can fall “in the near term”, boosting the likelihood of further easing in December.

We expect another Fed cut in December, followed by two more moves in March and June 2026 that take the funds rate to 3-3.25%, said Goldman Sachs chief economist Jan Hatzius in a note.

Hatzius added: The risks for next year are tilted toward more cuts, as the news on underlying inflation has been favourable and the deterioration in the job market … might be difficult to contain via the modest cyclical growth acceleration we expect.