Global Stocks Recover Amid Economic Optimism and Interest Rate Speculation

Global stocks saw gains in choppy trading, buoyed by U.S. economic data and speculation about the Federal Reserve easing monetary policy. Key indices showed mixed results, while consumer spending and PCE data hint at economic resilience. Traders anticipate interest rate cuts as corporate profits and consumer spending drive growth.

Global stocks experienced gains in volatile trading on Friday, poised for a fourth consecutive month of growth. The recovery, despite early August sell-offs, was supported by favorable U.S. economic data, aiding the dollar's rebound from a prolonged decline.

The U.S. personal consumption expenditures (PCE) price index—favored by the Federal Reserve—rose by 0.2% in July. Consumer spending, accounting for the majority of U.S. economic activity, increased by 0.5%, setting a positive stage for potential monetary policy easing by the Fed in September.

The Dow Jones Industrial Average, however, dipped by 0.14%, while the S&P 500 and Nasdaq Composite showed slight gains. Europe's Stoxx index and Britain's FTSE 100 exhibited marginal changes. The mixed responses point to a complex financial landscape as money markets anticipate possible rate cuts.

(With inputs from agencies.)