U.S. markets ended last week at fresh highs, buoyed by growing expectations that the Federal Reserve will begin cutting interest rates as soon as this month. Futures suggest traders are pricing in a 25-basis-point reduction at the September 17 meeting.
In Asia, China said a preliminary investigation found Nvidia in violation of antitrust laws, signaling potential regulatory headwinds for the U.S. chipmaker. In contrast, Microsoft avoided major penalties in the European Union, sidestepping tougher antitrust sanctions.
Diplomatic efforts also remained in focus as U.S. and Chinese delegations entered a second day of talks in Madrid, with discussions spanning trade issues and the fate of TikTok.
European bond markets stayed under pressure, with French debt continuing to trade at a discount to the euro-area periphery after Fitch downgraded the country’s credit rating last week.
In banking, Banco Sabadell Chairman said BBVA must raise its premium to at least 30% for a takeover to succeed, escalating tensions in one of Europe’s biggest ongoing banking battles.
Markets started the week on a firm footing, with investors positioning ahead of the Fed’s policy decision.