Temporary Truce in Markets as Stocks Rise Amid Interest Rate Watch and Geopolitical Tensions
European stocks opened the week with a slight increase—marking the first gain in six sessions—as markets
closely monitor developments in the U.S.-led trade war alongside escalating geopolitical tensions in the Middle East.
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During Monday’s session, the Stoxx Europe 600 index rose by 0.1% to reach 545 points, supported by gains in select sectors despite downward pressure from declines in utilities, automotive, and tech stocks. Germany’s DAX index held steady at 23,518 points, while the UK’s FTSE 100 added 0.2% to reach 8,867 points, and France’s CAC 40 climbed 0.3% to close at 7,709 points.
Among the most notable market moves, shares of French fashion group Kering surged 7% following news that Luca de Meo would become CEO after resigning from Renault, whose stock dropped 7.2% in a negative reaction to his departure.
Markets are now awaiting the release of Germany and Eurozone’s ZEW Investor Sentiment Survey, followed by the UK inflation report and the Bank of England’s interest rate decision on Thursday, where rates are expected to remain unchanged at 4.25%.
Cryptocurrencies
On the digital asset front, cryptocurrency prices rose on Monday as investors turned to portfolio diversification amid escalating geopolitical risks.
Bitcoin gained 1.33%, reaching $106,736
Ethereum rose 2.95% to $2,615
Ripple (XRP) climbed 1.77% to $2.1856
The Trump Coin increased 2.02% to $10.10
Dogecoin jumped 3.13% to $0.1776
These moves come ahead of the highly anticipated Federal Reserve meeting on Tuesday and Wednesday, where rates are widely expected to remain steady. This occurs amid pressure from former President Donald Trump to cut rates, following a financial disclosure revealing over $600 million in earnings from crypto, golf clubs, and other ventures during 2024.
Metals
In the metals market, gold futures declined at the start of the week as investors engaged in profit-taking after recent gains driven by regional tensions.
August gold futures fell 0.35% to $3,439.9/oz
Spot gold dropped 0.3% to $3,421.48/oz
Meanwhile, silver, palladium, and platinum saw slight increases.
The U.S. Dollar Index edged down 0.1% to 98.1, boosting movement in some industrial metals.
This week, attention is focused on policy decisions from several major central banks—including Japan,
the UK, Switzerland, Sweden, and Norway—as expectations rise for policy stability amid an increasingly uncertain global economic environment.