Stocks, gold and copper surge worldwide, shaking off global political chaos

Stocks worldwide are pushing higher on Monday as traders react to a pile-up of global political messes and inflation nerves.

Futures linked to the Dow Jones Industrial Average increased by 69 points, or 0.2%. The S&P 500 climbed by 0.2%, while the Nasdaq-100 advanced 0.4%, with all eyes on upcoming inflation data scheduled for release Wednesday and Thursday.

Earlier today, China’s trade data was released, and it showed that exports in August surged by 4.4% from a year earlier in dollar terms, which is way below the 5.0% forecast by economists surveyed by Reuters.

Imports also missed expectations due to the ongoing housing crisis and rising unemployment concerns, both of which are dragging on consumer demand.

Asia’s market sees dramatic surge

In the Asia-Pacific region, most markets ended higher despite growing instability. Japanese Prime Minister Shigeru Ishiba resigned over the weekend after sustained pressure following his party’s poor performance in last year’s national elections.

Investors reacted positively. Japan’s Nikkei 225 rose by 1.45% to close at 43,643.81, and the Topix added 1.06%, reaching a record 3,138.2. Meanwhile, the yen weakened 0.64% to 148.33 per dollar, while Japanese bonds sold off again.

The yield on the 30-year government bond increased by over 4 basis points to 3.272%, while the 20-year bond yield moved more than 3 basis points higher to 2.676%. Both have risen significantly throughout the year.

South Korea’s Kospi climbed 0.45% to 3,219.59, and the Kosdaq gained 0.89% to 818.6. Hong Kong’s Hang Seng Index went up 0.8%, while China’s CSI 300 inched up by 0.16% to 4,467.57.

Australia’s S&P/ASX 200 dropped by 0.24%, closing at 8,849.6. In contrast, Indian markets saw gains, with the Nifty 50 advancing 0.44% and the Sensex adding 0.34%.

OPEC+ increases production while metals extend gains, along with European stocks

Oil prices nudged higher after OPEC+ announced plans to raise output starting in October.

During a virtual meeting on Sunday, eight member nations agreed to add 137,000 barrels per day, a smaller increase than the 555,000 barrels added in both August and September, or the 411,000 in July and June.

Brent crude rose by 0.53% to $62.20 a barrel. U.S. West Texas Intermediate crude moved 0.6% higher to $65.89.

Copper prices rose 0.1% to $9,908.50 per ton on the London Metal Exchange as of 10:14 a.m. Singapore time. It had touched a five-month high the previous week. Aluminum went up 0.2%, while zinc climbed 0.4%. Iron ore was mostly unchanged at $104.70 a ton.

Futures contracts priced in yuan on China’s Dalian exchange edged down slightly. Shanghai steel contracts also declined, showing signs of softness in the broader materials market.

European stocks opened higher, except for Italy. The U.K.’s FTSE Index added 0.1%, Germany’s DAX rose 0.7%, and France’s CAC 40 was up by 0.4%. Italy’s FTSE MIB fell 0.9%.

Attention across Europe is centered on France, where Prime Minister Francois Bayrou faces a confidence vote he called himself, amid growing tension with opposing parties over a proposed €44 billion, or $51.5 billion, in spending cuts.

The political standoff in Paris adds another layer of uncertainty to global markets already navigating monetary policy and inflation.

In the bond market, U.S. Treasury yields showed only slight movement. The 10-year yield edged up to 4.089%. The 2-year yield added nearly one basis point to 3.515%, and the 30-year yield held steady around 4.773%. One basis point equals 0.01%, and bond prices move inversely to yields.

Gold hovered just below its recent peak in early Asian trading. Spot prices rose 0.2% to $3,592.91 an ounce as of 6:52 a.m. in Singapore, less than $10 away from its previous high of nearly $3,600. It had rallied 1.5% on Friday. The Bloomberg Dollar Spot Index ticked up by 0.1%. Silver and platinum both dipped slightly, while palladium was little changed.

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