On Monday, markets across Asia lit up with optimism. Japan’s Nikkei and Taiwan’s main benchmark soared to fresh highs, while Chinese big-cap stocks rallied to their strongest levels in nearly a year. The push was fueled by growing expectations of a global interest rate easing—and a notch of relief from the Ukraine conflict.
All eyes are now on the upcoming Jackson Hole symposium, where Fed Chair Powell is expected to signal whether rate cuts are on the cards. For now, markets are betting hard—placing an 85% probability on a Fed interest rate drop in September, a backdrop that’s empowering equities globally.
In the U.S., investor optimism is building too. S&P 500 futures ticked upward thanks in part to an earnings season that’s outshining forecasts: corporate earnings per share are up 11%, and most firms are lifting full-year projections. As usual, tech titans led the charge.
On the geopolitical front, a shift in tone from President Trump—favoring a peace deal over a ceasefire in Ukraine—has eased jitters in energy markets. Oil prices slid, while gold caught a rebound rally. Currency markets were calmer—dollar stayed balanced, and oil-sensitive currencies weathered the uncertainty well.
Taken together, the narrative suggests a thaw in both monetary policy risk and geopolitical tension—one that’s giving a fresh pulse to global markets. Investors are responding: bullish sentiment is back, but smart, grounded in corporate strength and cautious hope.
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