Global Markets Surpass Challenges to Gain in August

Global stocks rose on Friday, marking a fourth straight month of gains, despite early August volatility. Market bets on U.S. rate cuts weakened the dollar, while gains were noted in cyclic sectors like banks. However, the upcoming weeks may see volatility as investors assess U.S. economic strength and Fed rate adjustments.

Global stocks climbed on Friday, achieving a fourth consecutive month of gains despite early August's significant sell-off. Bets on U.S. rate cuts also resulted in the dollar undergoing its worst month since November.

MSCI's global shares index edged higher by 0.1%, poised for a 1.8% monthly increase, while the dollar index faced a 2.5% monthly decline. This marked a comeback from a tumultuous August start, triggered by weaker-than-expected U.S. economic data and a Bank of Japan rate hike.

Despite a strong rally in bond markets, bond yields remain low. As investors await the U.S. core personal consumption expenditures report, markets projected the possibility of the Fed's first rate cut at its Sept. 18 meeting, lifting equity markets globally. EU stocks and U.S. futures showed positive trends, continuing the bullish momentum in Asian markets.

(With inputs from agencies.)