Investors Hopeful Amid Rate Cut Speculation and Global Economic Shifts

Global stocks experienced a positive start to the week as investor optimism increased with the potential for a Federal Reserve rate cut in December. Key economic indicators and geopolitical developments, particularly regarding the US-Ukraine-Russia dynamics, played a significant role in influencing market sentiments.

Global stock markets kicked off the week with gains on Monday, spurred by increasing speculation over a possible Federal Reserve rate cut in December, despite ongoing debates among policymakers. Investors are closely watching upcoming U.S. retail sales data and Britain's anticipated budget announcement for further direction.

The geopolitical scene remains tense as the U.S. and Ukraine aim to revise a proposal to end the conflict with Russia, impacting oil prices amid hopes for eased sanctions on Russian supply. Asian markets responded favorably overnight with the MSCI Asia-Pacific index gaining 1% and South Korea's Kospi index rising slightly.

Fed funds futures suggest a 60% chance of a December rate cut, as analysts note favorable conditions, including underlying inflation trends and job market challenges. In currency news, the yen remains vulnerable, with Japanese authorities on high alert for potential interventions to stabilize the currency.

(With inputs from agencies.)