San Francisco Frontiers - Stock market optimism returns after tech sell-off

The week is filled with economic data and central bank decisions.

Gold climbed closer to its all-time high and the dollar dropped as traders bet on further cuts to US interest rates by the Federal Reserve next year.

"The coming week is shaping up to be a significant one for global markets, with a dense calendar of economic releases and major central bank decisions," said Jim Reid, managing director at Deutsche Bank.

The European Central Bank is expected to hold interest rates on Thursday, when the Bank of England is forecast to trim borrowing costs, as policymakers react to cooler inflation in the eurozone and UK.

However the Bank of Japan is expected to hike its main rate on Friday with the yen weak.

Attention turns also to key US data, including reports on jobs for October and November, which were delayed by a government shutdown. Investors will also study a US inflation reading this week.

The data will be pored over for an idea about the Fed's plans for next month's rate decision.

The US central bank has lowered borrowing costs at the past three meetings, citing concerns about a struggling American labour market, though there has been some dissent among policymakers who are concerned about persistently high inflation.

Also in view is the race to take the helm at the Fed after boss Jerome Powell steps down in May, with US President Donald Trump's top economic aide Kevin Hassett and Fed governor Kevin Warsh said to be the front-runners.

Concerns about the AI-fuelled tech rally returned to the spotlight late last week after poorly-received earnings from US giants Oracle and Broadcom revived questions about the vast sums invested in the sector.

After hefty losses on Wall Street on Friday, where the S&P 500 and Nasdaq indices both shed more than one percent, Asia in turn suffered a tech-led retreat Monday.

- Key figures at around 1440 GMT -

New York - Dow: UP 0.2 percent at 48,557.21 points

New York - NASDAQ: UP 0.4 percent at 23,281.37

New York - S&P 500: UP 0.3 percent at 6,848.68

London - FTSE 100: UP 1.0 percent at 9,741.91

Paris - CAC 40: UP 1.0 percent at 8,148.61

Frankfurt - DAX: UP 0.3 percent at 24,256.41

Tokyo - Nikkei 225: DOWN 1.3 percent at 50,168.11 (close)

Hong Kong - Hang Seng Index: DOWN 1.3 percent at 25,628.88 (close)

Shanghai - Composite: DOWN 0.6 percent at 3,867.92 (close)

New York - Dow: DOWN 0.5 percent at 48,458.05 (close)

Euro/dollar: UP at $1.1753 from $1.1742 on Friday

Dollar/yen: DOWN at 155.05 yen from 155.83

Pound/dollar: UP at $1.3392 from $1.3368

Euro/pound: DOWN at 87.77 pence from 87.83

West Texas Intermediate: DOWN 0.5 percent at $57.17 per barrel

Brent North Sea Crude: DOWN 0.3 percent at $60.92 per barrel

burs/jh/rlp

A.Smith--SFF