Global Stock Markets Brace for Economic Shifts Amid Political Turbulence
Global stock markets experienced declines due to political uncertainty in the U.S. and Europe, alongside economic concerns. As traders await U.S. inflation data and potential Fed interest rate cuts, the fallout from political events, such as the firing of a Fed policymaker and French political unrest, contributes to market volatility.
Global stock markets pulled back from record highs on Friday, highlighting investor caution ahead of key U.S. inflation data that could impact Federal Reserve monetary policy. This follows a period of growth, despite rising political risks and market concerns over U.S. President Donald Trump's move to dismiss Fed member Lisa Cook.
Across Europe, major indices such as STOXX 600, CAC 40, and DAX ended the week with losses, curtailing a bullish streak. Global macro strategist Michael Metcalfe noted increased political risk, as geopolitical uncertainties in France and the fiscal risk in European markets deter investors. This sentiment was echoed on Wall Street, with indices poised for a shaky start.
Market focus shifts to the impending U.S. PCE price index release, a decisive indicator for future Fed interest rate action. With political dynamics influencing market trends, investors are watching closely as the Fed prepares for potential rate cuts amid pressure from the Trump administration.
(With inputs from agencies.)
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