US Stock Futures Steady as Cooling Inflation and Strong Earnings Support Markets 
Oil Prices Steady as Strait of Hormuz Traffic Slows Amid US-Iran Conflict 
Japan Economy Grows 1.1% in Q2 as Consumer Spending Stalls 
European Stocks Steady as U.S.-Iran War, Euro Zone Data Keep Investors Cautious 
France Inflation Rises 2.4% in July as Consumer Prices Increase 
Gold Prices Rise as Weak US Retail Sales Cut Fed Rate Hike Bets 
Yen Edges Higher as Weak US Data Dampens Fed Rate Hike Expectations 
US Dollar Slips as Weak Retail Sales Reduce Fed Rate Hike Bets 
China Automakers Accelerate Global Expansion as Domestic Car Sales Slump 
Oil Prices Fall as U.S. Crude Inventories Surge and Hormuz Tensions Persist 
KOSPI Eyes Best Weekly Gain Since June as Samsung, SK Hynix Rally 
Morgan Stanley Sees Fed Holding Rates as U.S. Inflation Cools 
S&P 500 Retreats From Record High as AI Stocks Slide, Retail Sales Disappoint 
BSP Sees Philippine Inflation Easing, Keeps Policy Options Open 
Strait of Hormuz Shipping Near Standstill After New Vessel Attacks 
Canada-US Trade Talks Gain Momentum Ahead of Aug. 19 Tariff Deadline 
S&P 500 Hits Record High as Soft Inflation Data Eases Fed Rate Hike Fears 
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European equities moved modestly higher on Monday as falling government bond yields and a weaker U.S. dollar supported investor sentiment. Markets are increasingly betting that the Federal Reserve will keep interest rates unchanged at its September meeting.
The pan-European Stoxx Europe 600 Index gained around 0.2%, recovering some ground after ending a four-week winning streak last Friday. Germany’s DAX also advanced about 0.2%, while France’s CAC 40 remained broadly flat. The UK’s FTSE 100 outperformed regional peers with a gain of roughly 0.4%.
European stocks received additional support from easing sovereign bond yields, which retreated from recent multi-week highs. Lower borrowing costs tend to benefit growth-oriented stocks, while the softer U.S. dollar reflected shifting expectations for Federal Reserve monetary policy.
Money markets are now pricing in approximately a 70% chance that the Fed will hold benchmark interest rates steady in September. Expectations have shifted following a string of weaker U.S. economic indicators.
Recent data included a disappointing July employment report, inflation readings that showed limited additional price pressure, and an unexpected 0.6% decline in July retail sales. Together, the figures have reduced expectations for near-term monetary tightening and strengthened hopes that policymakers can maintain current rates without reigniting inflation.
Despite improving rate expectations, gains in European equities remained limited. Continued tensions surrounding commercial shipping through the Strait of Hormuz have helped keep crude oil prices elevated, creating cost pressures for energy-intensive European companies. Investors are also questioning whether valuations have become stretched after a strong summer rally pushed major European stock indexes close to record highs.
With second-quarter earnings season largely complete and Europe’s economic calendar relatively quiet, investors are turning to global economic signals for direction.
Attention will now shift to the upcoming U.S. S&P Global flash PMI data for August, followed by the Federal Reserve’s Jackson Hole Symposium. Markets will assess whether economic activity is cooling at a pace consistent with a soft landing while keeping inflation under control.
