Stocks Rise on Fed Rate Cut Optimism Amid Japan, France Political Uncertainty

Global stock markets rose early this week, driven by growing expectations that the U.S. Federal Reserve will cut interest rates soon following weak U.S. jobs data, which has increased speculation of a 25 to 50 basis point rate reduction at the Fed's upcoming meeting. Asian and European shares gained, with the MSCI Asia-Pacific index and U.S. futures advancing, while Treasury yields remained lower amid political uncertainties in countries like Japan and France. In Japan, the resignation of Prime Minister Shigeru Ishiba sparked market reactions, with traders anticipating that the Bank of Japan will delay rate hikes due to political instability. France faces potential political upheaval as Prime Minister Francois Bayrou is expected to lose a confidence vote, creating uncertainty about its leadership and debt outlook. Investors are also watching for important U.S. inflation data releases that could influence the Fed's monetary policy decisions. Despite these challenges, the market sentiment remains cautiously optimistic, with investors closely monitoring political developments and economic indicators worldwide.