European and Asian stock markets largely gained Monday and gold hit a record high after US inflation figures met expectations, soothing concerns about president Donald Trump鈥檚 latest tariff salvo.
Investors were keeping a wary eye on Washington, where lawmakers have failed to reach a funding compromise to keep the government running, which observers say could affect the release of key data.
The dollar dropped against main rivals, while oil prices retreated on speculation that OPEC+ will increase output, fanning concerns of a glut.
The drop followed last week鈥檚 rally on mounting tensions between NATO countries and oil producer Russia, increasing the possibility of fresh sanctions on Moscow.
鈥楿S (stocks) futures are pointing to a higher open, on track to extend gains after markets closed on a positive note on Friday,鈥� noted Victoria Scholar, head of investment at Interactive Investor.
鈥業nvestors will be paying close attention to the latest nonfarm payrolls report on Friday for clues into the Fed鈥檚 next move.鈥�
All three main indices in New York ended in the green Friday, snapping three straight losses, following news that the Federal Reserve鈥檚 preferred gauge of inflation rose in line with expectations, giving the bank room to cut interest rates again.
While the 2.7 per cent reading on the August personal consumption expenditures (PCE) index was up from 2.6 per cent in July and well above the Fed鈥檚 two per cent target, policymakers are focusing on supporting the labour market after a string of weak jobs readings.
The Fed鈥檚 rate cut earlier this month 鈥� the first since December 鈥� came as a closely watched guide indicated two more were in the pipeline before January.
The news helped investors look past Trump鈥檚 announcement last week of 100 per cent tariffs on pharmaceuticals set to kick in Wednesday, as well as for big-rig trucks, home renovation fixtures and furniture.
Gold鈥檚 price on Monday hit an all-time peak just short of $3,820 an ounce over concerns about the possible government shutdown and on expectations for more rate cuts, which make the precious metal more attractive as an investment.
On the corporate front, shares in GSK climbed 2.5 per cent in London midday trading after the British pharmaceutical giant unexpectedly announced that longtime chief executive Emma Walmsley will be replaced by its chief commercial officer in January.
Lufthansa meanwhile said it will cut 4,000 jobs, nearly four per cent of the German airline giant鈥檚 workforce, after profits slumped in the face of mounting headwinds.
Hong Kong led the gainers in Asia thanks to a surging share prices for Chinese tech giants including Alibaba.
While Tokyo slipped overall, the finance arm of聽Sony soared more than 30 per cent on its debut after being spun off by the tech titan to focus on its entertainment and image sensor business.
