On Monday, the three major US stock indices saw modest gains of around 0.20%, attempting to recover from the significant losses sustained the previous week, which saw the Dow endure its steepest one-week decline since 2023. Traders were digesting a mixed retail sales report, which revealed a modest 0.20% increase in retail sales—falling short of expectations. However, the control group that influences GDP calculations surged by 1%, far surpassing the anticipated 0.20%. Despite this, investor sentiment remained under pressure following comments from Treasury Secretary Scott Bessent, who downplayed concerns over the stock market's recent pullback, stating that "corrections are healthy."

Meanwhile, the rand strengthened against a weaker dollar on Monday, as market participants appeared to brush off the United States' decision late last week to expel South Africa's ambassador, a further indication of the deteriorating diplomatic relations between the two nations. By 15h01 GMT, the rand was trading at R18.11 to the dollar, about 0.40% stronger than its previous close. The Johannesburg Stock Exchange's Top 40 index finished 0.70% higher, while the benchmark 2030 government bond saw a slight improvement, with the yield dropping by 0.5 basis points to 9.16%.

In the UK, the FTSE 100 edged higher, marking its fourth consecutive day of gains. Phoenix Group led the charge, rising nearly 4% following strong earnings and an upgraded outlook. Other life insurers, including Prudential (up 0.70%) and Legal & General (up 1.20%), also performed well. Mining stocks rose as copper prices gained amid optimism surrounding Chinese economic growth, while gold saw an increase due to safe-haven demand. Major mining companies, including Antofagasta, Anglo American, Rio Tinto, Glencore, and Fresnillo, all posted gains of over 1%. In contrast, AstraZeneca saw a dip after announcing its $1 billion acquisition of cell therapy specialist EsoBiotec.

Across the Eurozone, the STOXX 50 rose by 0.50%, while the STOXX 600 gained 0.70% on Monday. Traders remained optimistic ahead of Tuesday's critical German spending plan vote, where the conservative CDU/CSU bloc, led by election winner Friedrich Merz, is expected to secure the two-thirds parliamentary majority required to pass proposed constitutional amendments. Investors were also assessing positive economic data, China's newly introduced "Special Action Plan to Boost Consumption," geopolitical developments, and several key central bank decisions, including from the Federal Reserve, later this week.

In Asia, the Japanese Nikkei 225 Index climbed 0.93% to close at 37 396, while the broader Topix Index surged by 1.19% to 2 748 on Monday, both reaching their highest levels in over a week amid a broad market rally. Japanese stocks tracked the relief rally on Wall Street, as investors continued to evaluate shifting trade policies and economic uncertainties in the US.

In China, the Shanghai Composite rose by 0.19% to close at 3 426, while the Shenzhen Component fell by 0.19% to 10 958 in mixed trading, as investors adopted a cautious stance ahead of more details on Beijing's latest stimulus measures. On Sunday, China unveiled a special action plan aimed at revitalising consumption and stabilising the stock and real estate markets.

In commodities, WTI crude oil futures rose to around $67.80 per barrel on Monday, extending gains from the previous session following China's commitment to new measures to boost consumption and the US's military actions in Yemen. Meanwhile, gold increased to approximately $2 990 per ounce, hovering near record highs due to strong safe-haven demand amid ongoing trade tariff uncertainty and geopolitical tensions.