Shares steady, dollar slips as markets pare Fed rate risks

Global stock markets showed a slight increase on Monday, while the U.S. dollar weakened to its lowest point since June, following a series of disappointing U.S. economic data. This included a surprising decline in retail sales and a drop in consumer sentiment, both of which contributed to reduced expectations of an imminent rate hike from the Federal Reserve.

The probability of a rate increase next month has decreased to 30 percent, down significantly from around 50 percent a week ago, according to the CME Group's FedWatch tool. The STOXX index, which tracks 600 major European companies, rose by 0.04 percent, with resources stocks benefiting from higher gold prices. Meanwhile, U.S. Nasdaq futures climbed 0.5 percent, and S&P futures increased 0.2 percent.

In South Korea, there was little reaction after President Donald Trump announced a significant reduction in joint military exercises with the country, while local markets were closed for a holiday. Meanwhile, oil prices fluctuated after last week's gains, with Iran calling on the U.S. to concede and Trump urging Americans to accept higher gasoline prices amid ongoing conflict.

Brent crude rose 1 percent to $89.42 per barrel, while U.S. crude rebounded from earlier losses to gain 0.55 percent. Analysts, like Shane Oliver from AMP, noted that the market's reduced expectations of a Fed rate hike have fueled the bullish trend in stocks.