Global Markets Surge Amid Fed Rate Cut Expectations

Global shares rose as U.S. economic data pointed towards a Federal Reserve rate cut, weakening the dollar and boosting gold, with Wall Street set for a second week of gains. Meanwhile, Japanese bonds sold off, and commodities like copper surged on supply concerns and Fed expectations.

Global shares witnessed gains on Friday, fueled by U.S. economic data that solidified the outlook for a Federal Reserve rate cut. The anticipation of this move strengthened gold and put pressure on the dollar. Wall Street stocks gained strength in afternoon trading, poised for a second consecutive week of growth, with sectors like communication services, consumer discretionary, and real estate driving the uptick, while utilities and healthcare lagged.

The Dow Jones Industrial Average rose by 0.36%, the S&P 500 by 0.26%, and the Nasdaq Composite by 0.30%. European markets remained largely unchanged, with a modest weekly gain of 0.41%. MSCI's global stock index inched up 0.07%, marking the second straight session of upward movement.

As the Fed prepares for a likely 25 basis point rate cut, investor confidence is buoyed, with pricing in a near 90% probability of this decision. Concurrently, Japanese bond yields have surged, prompting a rally in the yen amid a hawkish stance by the Bank of Japan. The global bond market remains in focus, as traders adjust their strategies in response to shifting interest rate expectations.

(With inputs from agencies.)