Global stock markets advanced as investors monitored political upheavals in France and Japan, along with mixed economic data, AFP reported.

Oil prices surged after OPEC+ decided to increase supply at a slower pace, analysts noted. Gold reached a new record above $3,600 per ounce, reinforcing its status as a safe-haven investment in uncertain times.

“Political uncertainty is affecting markets at the start of the week, but the overall tone remains optimistic,” commented Susanna Streeter, Head of “Money and Markets” at Hargreaves Lansdown.

In Japan, Prime Minister Shigeru Ishiba’s resignation triggered market turbulence: the yen weakened, stock indices surged, and government bond yields rose. The Tokyo Nikkei index gained 1.5%, with exporters benefiting from the weaker yen. Ishiba resigned after less than a year in office, losing his majority in both houses of parliament, creating uncertainty for the world’s fourth-largest economy.

In Europe, Paris markets climbed while the euro stabilized as French Prime Minister François Bayrou is expected to lose a confidence vote in parliament after nine months in office. Bayrou surprised even his allies by initiating the vote to end the long-standing conflict over his budgetary austerity measures totaling nearly €44 billion.

The European Central Bank is likely to keep interest rates unchanged as inflation remains under control, and tensions over U.S. tariffs ease. U.S. employment data last week strengthened expectations for a Federal Reserve rate cut.

Chinese exports to the U.S. fell but were offset by growth to Southeast Asia and Europe amid ongoing trade tensions between Beijing and Washington. Germany reported a decline in exports to the U.S. to the lowest level since 2021.

Over the weekend, eight key OPEC+ countries agreed to raise oil output by 137,000 barrels per day starting next month, following a previous production increase of 2.2 million barrels per day.

Key market indicators around 10:20 GMT:

London FTSE 100: +0.2% at 9,221.81 points
Paris CAC 40: +0.4% at 7,706.91
Frankfurt DAX: +0.7% at 23,759.69
Tokyo Nikkei 225: +1.5% at 43,643.81 (close)
Hong Kong Hang Seng: +0.9% at 25,633.91 (close)
Shanghai Composite: +0.4% at 3,826.84 (close)
New York Dow: -0.5% at 45,400.86 (close)
Currency rates: EUR/USD 1.1725; GBP/USD 1.3511; USD/JPY 147.86; EUR/GBP 0.8679.

Oil prices: Brent $66.80/barrel (+2%), WTI $63.10/barrel (+2%). | BGNES