Markets on the Move Amid Global Economic Uncertainty

Asia extends gains from the Powell rally, pushing global stocks higher, except Nikkei due to yen strength. Oil prices rise amid Israel-Hezbollah conflict. Fed's focus shifts to labour market, influencing rate cut speculations. Key market movers on Monday include Riksbank minutes, German business climate Ifo, and Nvidia's results.

Global markets continue to experience volatility following the latest statements from Federal Reserve Chair Jerome Powell, with notable gains in Asia except for the Nikkei, which fell due to the yen's rise. Meanwhile, oil prices increased by 0.7% amid escalating tensions between Israel and Hezbollah, raising fears of supply disruptions.

Powell's new emphasis on the labour market over inflation suggests the Fed may be more accommodating to rate cuts, triggering market speculation of a significant September rate reduction. This speculation comes as ten-year yields hover just below two-year yields, possibly turning the yield curve positive for the first time in years.

Looking ahead, highly anticipated economic data and corporate earnings could drive markets this week. Key events include the Riksbank's minutes, the German Ifo Business Climate index, and Nvidia's earnings report, with investors watching closely for any indications that could impact investment decisions.