World stocks hovered near record highs on Monday as investors shifted their focus to China and Switzerland for potential monetary easing, following the significant rate cut implemented by the U.S. Federal Reserve last week. Market participants anticipated U.S. inflation data later in the week, which is expected to support predictions for additional easing measures in the country. China’s central bank recently reduced its 14-day repo rate by 10 basis points, following disappointment in the markets due to the absence of cuts in longer-term rates. Despite two weeks of gains, MSCI’s broad index of world stocks remained stable. European stocks on the Stoxx share index traded flat, while Wall Street stock futures fluctuated between slight gains and losses. The Fed’s 50-basis-point rate cut last week, coupled with expectations of another substantial move in November, led to heightened trading activity, with over 20 billion shares exchanged on U.S. exchanges on Friday, the most active session since January 2021. Nonetheless, there is a division among investors regarding whether global monetary easing initiatives have been initiated too late to prevent an economic slowdown or a potential U.S. recession. Analysts, including Christoph Schon from Simcorp, pointed out historical instances where 50-basis-point cuts by the Fed coincided with severe economic downturns in 2008 and 2001, raising concerns about the current situation. Amid the uncertainty, unexpected growth or inflation data could unsettle the markets by impacting projections for future rate cuts. The upcoming meetings of the Swiss National Bank and Sweden’s central bank are expected to result in additional rate cuts. Traders are also anticipating another cut by the European Central Bank in October. The market sentiment may be influenced by the core personal consumption expenditures (PCE) data to be released by the Fed later in the week, along with other economic indicators such as U.S. consumer confidence and durable goods orders. In the midst of geopolitical tensions and economic uncertainties, Brent Crude oil and Gold prices remained relatively stable. The euro dropped against the dollar, while the Japanese yen strengthened. Across Asia-Pacific, shares outside Japan saw gains, and the 10-year U.S. Treasury yield increased slightly.