Global stocks markets recorded fresh gains on Monday, September 8, 2025, as the U.S. dollar weakened against a basket of major currencies, boosting investor appetite across multiple regions.
The greenback’s broad retreat, however, came alongside political uncertainty in key economies, leaving traders cautious about the medium-term outlook.
According to Reuters, the U.S. dollar’s decline—except against the Japanese yen—helped lift equities worldwide.
Investors reacted to developments in Argentina, Japan, France, and Indonesia, alongside renewed expectations that the U.S. Federal Reserve could cut interest rates sooner than anticipated.
Argentina remained the most turbulent market after President Javier Milei’s ruling party suffered a significant defeat in Buenos Aires province.
The outcome sent the Argentine peso plunging by as much as 7.5 per cent to a record low, while equities dropped more than 10 per cent.
Analysts fear the setback could derail Milei’s austerity-driven reforms, which have already sparked public protests and investor skepticism.
Japan also faced heightened political risk after Prime Minister Shigeru Ishiba resigned unexpectedly.
His departure created uncertainty over Tokyo’s policy direction, with the yen slipping further against the dollar.
Investors are watching closely to see if Ishiba’s successor adopts dovish policies, particularly around fiscal stimulus and monetary easing, which could weaken the yen further but offer some support to Japanese exporters.
In Europe, France’s fragile political environment remained a drag on sentiment.
Prime Minister François Bayrou is battling the risk of defeat, raising fears of governance paralysis in the eurozone’s second-largest economy.
Investors worry that prolonged instability could undermine fiscal reforms and complicate France’s role in wider EU policy-making.
Despite these concerns, the pan-European STOXX 600 index still advanced 0.28 per cent, supported by gains in energy and banking stocks.
In Asia, Indonesian equities ended the day lower despite early gains.
The market was rattled by a surprise cabinet reshuffle that saw the removal of respected Finance Minister Sri Mulyani Indrawati.
Although the rupiah strengthened modestly, investors grew concerned about the country’s fiscal direction and whether the change would weaken Indonesia’s reputation for economic stability.
Attention remained on the United States, where weaker-than-expected August labor data reinforced expectations that the Federal Reserve may cut interest rates at its next policy meeting.
Treasury yields fell for a fourth consecutive day, while Wall Street ended mixed.
The Dow Jones Industrial Average edged slightly lower, but the S&P 500 and Nasdaq closed 0.31 per cent and 0.82 per cent higher, respectively, as investors positioned ahead of key economic releases due later this week.
Global Market Indicators
MSCI’s gauge of global stocks rose 0.35 per cent to 959.07.
Emerging market stocks added 0.58 per cent, lifted by the weaker dollar.
MSCI’s Asia-Pacific index outside Japan climbed 0.67 per cent.
Japan’s Nikkei surged 1.45 per cent to close at 43,643.81 points.
The dollar index, which tracks the greenback against major currencies, slipped, enhancing returns on foreign equity holdings for U.S.-based investors.
Gold prices rallied past $3,600 an ounce, benefiting from safe-haven demand and speculation that U.S. interest rates are nearing a downward pivot.
Oil markets also saw modest recovery as supply concerns lingered, with traders balancing global demand uncertainties against geopolitical risks in the Middle East.
Analysts noted that while global equity markets appear resilient, the underlying political and economic challenges across several regions suggest volatility could persist.
“The weakening dollar has provided a temporary cushion, but investors remain wary of political shocks from Argentina to France and leadership transitions in Japan and Indonesia,” a London-based strategist told Reuters.
For Nigerian investors, the global market rally could signal stronger portfolio inflows if the U.S. dollar remains weak and the Federal Reserve pivots to rate cuts.
This would ease capital outflows from frontier markets and improve liquidity for domestic equities, analysts noted.
