Rising Equities and Rate Cut Speculations Steer Global Market Dynamics

MSCI's global equities index stayed near record highs as the dollar and U.S. Treasury yields grew on Friday, driven by heightened expectations for U.S. rate cuts. Gold neared a fourth consecutive weekly gain, reflecting ongoing economic uncertainties.

The University of Michigan reported a dip in U.S. consumer sentiment for the second month in September, its lowest since May, with concerns over business conditions, job market, and inflation. European stocks dipped slightly, reversing earlier gains, while Asian stocks surged, notably Chinese equities hitting a 3-1/2 year peak on anticipated AI-related earnings.

Wall Street's indices hit all-time highs on Thursday, spurred by weaker jobs figures boosting hopes of multiple interest rate cuts from the Federal Reserve, with the first potentially on September 17. In other markets, U.S. crude and Brent rose following a Ukrainian drone attack impacting Russian port activities, despite existing oversupply challenges.

(With inputs from agencies.)