September 5, 2025 – Global markets ended the week on a strong note as growing expectations of a U.S. Federal Reserve interest rate cut fueled optimism across equities, bonds, and commodities. Investors are increasingly confident that cooling labor market data and recent dovish signals from central bank officials will translate into monetary easing later this month.
Stocks Push Higher
European shares advanced, with benchmarks such as the STOXX 600, FTSE 100, and CAC 40 all in positive territory. Wall Street also extended its rally, with major indexes reaching fresh highs as traders positioned themselves for supportive monetary policy. Asian markets followed the trend, buoyed by strong foreign inflows.
Bond Yields Ease
Government bond yields in both Europe and the U.S. retreated after weeks of volatility. Lower yields reflect investor confidence that borrowing costs will decline, easing pressure on highly indebted governments and corporate borrowers.
Surge in Investor Inflows
Equity funds recorded their largest weekly inflows in weeks, led by strong demand for technology stocks. At the same time, investors also increased allocations to bonds, money markets, and precious metals, highlighting a broad appetite for risk and hedging strategies.
Spotlight on U.S. Jobs Report
Attention now turns to the U.S. non-farm payroll report due later today. Analysts expect the data to show further signs of labor market cooling. A weaker-than-expected figure could all but confirm a quarter-point rate cut at the Fed’s upcoming policy meeting, while a surprise beat may test current market optimism.
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