Global Markets Poised as China and Switzerland Gear Up for Potential Rate Cuts

World stocks remain high as investors focus on China and Switzerland for potential rate cuts following the U.S. Federal Reserve's recent move. Attention also shifts towards upcoming U.S. inflation data, influencing the global economic outlook. Market behavior reflects cautious optimism across multiple regions and sectors.

World stocks retained their high levels as investors turned their focus to China and Switzerland, expecting these central banks to introduce rate cuts following the U.S. Federal Reserve's decisive move last week.

Before U.S. inflation data expected to confirm more easing, China's central bank lowered its 14-day repo rate by 10 basis points. MSCI's broad index of world stocks remained steady, with Asia-Pacific shares outside Japan rising 0.3%. Singapore's main index reached its highest point since 2007.

Tokyo markets were closed for a holiday, but futures trading showed potential gains. Nikkei contracts rose significantly after last week's rally. Meanwhile, markets continued to reflect the Federal Reserve's impact, with futures suggesting another rate cut in November is possible. However, economic analysts warn that a recession might be forthcoming, drawing comparisons to downturns in 2008 and 2001.

On Monday, European markets showed stability, with U.S. futures predicting a robust session. With U.S. monetary policy playing a crucial role, the Federal Reserve's preferred inflation gauge, set to be released on Friday, will be pivotal. Similarly, central bank activities in Switzerland, Sweden, and Australia are in focus, influencing global market expectations.

The dollar made slight gains in currency markets, and gold prices rose to record levels, reflecting recession fears. Oil prices declined slightly despite geopolitical tensions in the Middle East.

(With inputs from agencies.)