Global equities experienced a modest increase for the sixth consecutive day on Monday, coinciding with a week that is widely anticipated to mark the beginning of a monetary easing cycle in the United States, potentially starting with a significant rate cut.

Central banks in both Japan and the UK are also scheduled to convene this week, with expectations that they will maintain their current policies for the time being.

A busy economic calendar includes key data releases on U.S. retail sales and industrial production. Geopolitical tensions were heightened by reports of a second assassination attempt on Republican presidential candidate Donald Trump, as noted by the FBI.

However, the primary focus on Monday was the increasing anticipation that the Federal Reserve may reduce interest rates by half a percentage point following its upcoming meeting, aiming to ensure a smooth economic transition amid slowing job growth and easing inflation.

 As European markets opened, the MSCI All-World index was poised for its sixth consecutive gain, rising by 0.1%. Over the past six weeks, the index has surged by 10%, fueled by optimism surrounding a substantial Fed rate cut.

XTB research director Kathleen Brooks commented, "The market's response to a potential 25 or 50 basis point cut will hinge on how the Fed communicates its decision and the rationale behind a 50 basis point reduction, as well as insights from the Dot Plot regarding Fed members' expectations for the terminal rate."

She added, "If the Fed opts for a 50 basis point cut while emphasizing its commitment to a soft landing for the economy, it would be favorable for the stock market.

Conversely, if the Fed appears to be reacting to ominous economic signals, a sell-off in stocks could follow."

S&P 500 and Nasdaq futures showed a slight decline of 0.1%-0.2%, indicating a flat opening for the major indices after the S&P 500 achieved its best weekly performance of the year last week.

In Europe, the STOXX 600 index fell by 0.3% in early trading as investors took profits following last week's 1% increase.

Recent economic data from China revealed that industrial output growth has decelerated to a five-month low in August, accompanied by further declines in retail sales and new home prices. Economists at Goldman Sachs and Citigroup have revised their projections for Chinese growth down to 4.7% for 2024. Additionally, a series of public holidays throughout Asia has resulted in reduced activity in equity markets.

In the United States, futures indicate that traders are now assigning a 60% probability to a half-point interest rate cut by the Federal Reserve, a significant increase from 30% just a week prior. This shift in expectations follows media reports suggesting a potential for more aggressive monetary easing.

Consequently, Treasuries have experienced a notable rally, with the yield on the two-year note, which is sensitive to interest rate changes, dropping 35 basis points since the beginning of September. On Monday, it was down 2 basis points for the day, trading at 3.555, marking its lowest level in two years.

The Bank of England is anticipated to maintain its interest rate at 5.00% during its meeting on Thursday, although the market has factored in a 31% likelihood of an additional cut.

The Bank of Japan is set to convene on Friday, where it is expected to keep its policy unchanged, but may signal intentions for further tightening in October.

The decline in Treasury yields has provided additional support for the Japanese yen, which fell 0.7% against the dollar to 139.84, its weakest level in 14 months.

The euro appreciated by 0.35% to $1.1112, although expectations of further rate cuts from the European Central Bank have capped its rise at $1.1200.

Lower bond yields have also bolstered gold prices, which increased by 0.3% to $2,583 an ounce, nearing its all-time high of $2,588.81.

Meanwhile, oil prices have risen as nearly 20% of crude oil production in the Gulf of Mexico remains offline, with Brent crude climbing 0.5% to $71.97 a barrel and U.S. crude gaining 0.7% to $69.12.