Global Markets Teeter Amid China Woes and French Political Developments

World stocks remain just below record highs due to concerns about China's economic growth and political uncertainties in France. European shares slightly rebounded, while U.S. futures were flat. China's bond yields rose amid central bank actions, and the French leftist alliance's surprise election win added to market caution.

World stocks hovered below record highs on Monday, as market sentiment was tempered by economic concerns in China and potential political gridlock in France. Optimism about a potential U.S. interest rate cut in September was overshadowed by these issues.

In Europe, early losses were reversed but U.S. stock futures remained largely unchanged while Japan's Nikkei index slipped by 0.32%. China's blue-chip index was down 0.9%, reflecting investor disappointment due to the lack of policy stimulus amid a sluggish economic recovery and rising geopolitical tensions.

In France, a leftist alliance unexpectedly led ahead of the far-right in Sunday's election, presenting a likely obstacle to Marine Le Pen's National Rally from governing. This election result brought some relief to investors yet introduced concerns over the potential rollback of President Emmanuel Macron's pro-market reforms.

(With inputs from agencies.)