Global stocks climb, dollar weakens ahead of potential Fed rate cut

European indexes opened higher, led by mining stocks as copper prices rose. The STOXX 600 added 0.7%, and the UK’s FTSE 100 gained 0.9%. US index futures also pointed to a positive start, while Asian markets ended the week mostly higher.

Investors turned their attention to macro data. Markets are awaiting the US employment report, which could confirm easing pressure in the labor market. US Treasury yields continued to fall, with the 10-year note hovering near a three-month low — a reflection of growing expectations for imminent Fed easing.

Gold prices also moved higher, signaling caution across markets. Investors are maintaining exposure to safe havens amid uncertainty over inflation trends and recent Fed remarks. The metal approached a one-week high.

In commodities, oil fluctuated after a sharp drop the previous day. Prices remain under pressure from demand concerns, though short-term moves point to attempts at stabilization. Silver also gained as the dollar weakened.

Market participants note that equities remain highly sensitive to monetary signals. Recent comments from Fed officials have been read as more dovish, reinforcing expectations of an initial rate cut. Still, analysts caution that market direction will hinge on the strength of upcoming macro data and the outcome of the Fed’s December meeting.

Investors continue to evaluate the Fed’s potential easing path, particularly as the US economy shows steady but slowing growth. Signs of a cooling labor market could strengthen expectations that the central bank is preparing to begin a rate-cut cycle in the coming months.

Late-week consolidation suggests markets are bracing for heightened volatility ahead of key economic releases. For now, global equities and commodities are posting moderate gains, while the dollar remains under pressure.