Global Markets Hold Steady Amid Trade Talks and Interest Rate Speculations

World shares hovered just below recent record highs as the U.S.-Canada trade talks progressed, signaling improved market sentiment. Meanwhile, expectations of a possible early Federal Reserve interest rate cut caused the dollar to weaken. Investors are closely watching U.S. tax-cut debates and the progress of a significant spending bill.

World shares remained slightly below their recent peaks on Monday, buoyed by U.S.-Canada trade talks that improved risk sentiment. At the same time, the dollar slipped, driven by expectations of early U.S. jobs data prompting a possible Federal Reserve interest rate cut.

Canada announced the rescindment of its digital services tax, submitting to U.S. pressure to smooth trade negotiations. Investors were also cautious about a pending U.S. tax-cutting and spending bill, forecasted by the Congressional Budget Office to increase national debt by $3.3 trillion over a decade.

Meanwhile, in the tech sector, demand for major growth stocks, such as Nvidia and Amazon, pushed Nasdaq futures up 0.5%, with S&P 500 e-minis rising 0.4%. Market resilience persists despite uncertainty, although experts note current equity valuations have not been so expensive since the year 2000.

(With inputs from agencies.)