European markets climb further on peace hopes

European stock markets opened higher on Monday, extending the momentum from last week. Investor optimism is fueled by speculation about a possible peace agreement between Russia and Ukraine, while attention is shifting to upcoming US inflation data and later tariff negotiations.

STOXX 600 nears summer highs

By 07:08 GMT, the pan-European STOXX 600 index was up 0.3 percent, edging close to its highest level since late July.

Political signals from Alaska

Donald Trump, scheduled to meet Vladimir Putin in Alaska on Friday, said that a potential deal could include a territorial exchange that would benefit both parties.

German defense stocks under pressure

Renewed hopes for a peace settlement weighed on defense manufacturers. Shares in Rheinmetall fell 3.7 percent, while Renk and Hensoldt dropped 3 percent and 2.1 percent respectively.

Energy sector: Orsted's steep drop

Orsted shares plunged 22 percent after the Danish offshore wind developer announced plans to raise 60 billion kroner, equivalent to 9.4 billion US dollars, through a share sale. The company cited challenging conditions in the US offshore wind market.

Tech sector: acquisition talks emerge

Shares in German firm Northern Data slid nearly 3 percent after US-based video platform and cloud services provider Rumble revealed it is considering a roughly 1.17 billion US dollar bid for the AI-focused cloud company.

Asian markets climb ahead of key US inflation data

Asian stock markets closed higher on Monday, supported by upbeat corporate earnings, particularly in the technology sector. Investors are now turning their attention to upcoming US inflation figures, which could shape the direction of the dollar and bond yields.

Nikkei futures approach all-time high

With Japanese cash markets closed for a public holiday, Nikkei futures surged to 42,380 points, indicating the index may soon challenge its record high of 42,426 points.

European futures open in positive territory

EUROSTOXX 50 futures rose 0.2 percent, FTSE futures gained 0.1 percent, and DAX futures added 0.2 percent.

US inflation: a decisive moment for the Fed

Tuesday's release of the US Consumer Price Index is expected to show that higher tariffs are pushing core inflation up by 0.3 percent, bringing the annual rate to 3.0 percent—well above the Federal Reserve's 2 percent target.

Rate-cut expectations face uncertainty

A stronger-than-expected inflation reading could challenge market bets on a September rate cut. However, analysts note that it would take a significantly high figure to alter current forecasts, given the recent slowdown in job growth.

Markets nearly certain about September rate cut

Financial markets are pricing in roughly a 90 percent chance of a monetary policy easing in September, with at least one more rate reduction expected before year-end.

Miran may join in time to vote on the cut

Stephen Miran, selected by Donald Trump to lead the Federal Reserve, could take office in time to cast his vote in favor of the September rate cut. The shortlist for the new chair has expanded to around ten candidates.

Strong earnings give stocks a boost

The prospect of cheaper borrowing costs has been reinforced by a strong earnings season. According to BofA, 73 percent of companies have exceeded profit expectations, well above the long-term average of 59 percent, while 78 percent have beaten revenue forecasts.

US futures near all-time highs

Futures on the S&P 500 and Nasdaq gained 0.1 percent on Monday, edging closer to record levels.

Mixed reaction to semiconductor news

Analysts remain divided on a Financial Times report suggesting that Nvidia and AMD had agreed to hand over 15 percent of their China chip sales revenue to the US government in exchange for export licenses.

Asian markets edge higher as China posts mixed inflation data

The MSCI broad index of Asia-Pacific shares outside Japan rose 0.3 percent. South Korea's market was flat after a 2.9 percent gain last week. Chinese blue chips climbed 0.5 percent as July consumer inflation picked up, while producer prices continued to decline, indicating that the country's vast manufacturing sector is exporting deflation abroad.

Investors await key industrial and retail data

This Friday will bring fresh figures on industrial production and retail sales for July. Analysts expect a modest slowdown in growth following the sharp surge recorded in the previous month.

Currency market remains subdued

Foreign exchange trading was calm, partly due to Japan's absence from the market. The dollar index eased to 98.066 after a 0.4 percent drop last week. The euro rose 0.2 percent to 1.1670 dollars, rebounding from a recent low of 1.1392 dollars. The US dollar fell to 147.50 yen, facing resistance around the 147.90 level.

Australian dollar slips ahead of central bank decision

The Australian dollar retreated to 0.6520 dollars ahead of the Reserve Bank of Australia meeting, where a rate cut is widely anticipated. In July, the RBA surprised markets by holding off on easing, awaiting fresh inflation data. The latest figures came in favorably, leading investors to fully price in a quarter-point reduction to 3.60 percent.

Gold and oil prices move lower

In commodities, gold declined 0.6 percent to 3,378 dollars an ounce after last week's sharp swings, which followed reports that the US planned to impose a 39 percent tariff on certain gold bars — a key Swiss export. On Friday, futures fell further after the White House signaled plans for an executive order clarifying its stance on gold tariffs. Brent crude slipped 0.6 percent to 66.22 dollars a barrel, while US WTI dropped 0.7 percent to 63.44 dollars.