NEW YORK, New York - U.S. stocks edged higher on Monday, but the dollar continued to be hammered, while gold shot up past $5,100 an ounce, as global investors continued to flee U.S. assets in the wake of the erratic behaviour of the U.S. president last week.

Investors were also on edge Monday on the eve of the FOMC meeting over the next two days, beginning Tuesday at which the immediate fate of U.S. interest rates will be determined. The Fed will disclose its stance at the conclusion of the meeting on Wednesday.

"This week's lineup of megacap earnings should help shape sentiment around the AI trade and the still-struggling tech sector, but Wednesday's Fed announcement will likely keep politics in the headlines," Chris ⁠Larkin at E*Trade from Morgan Stanley told the Reuters news agency on Monday.

The major U.S. stock indices that advanced on Monday were led by a broad-based rally.

The Standard and Poor's 500 rose 34.62 points, or 0.50 percent, to close at 6,950.23, building on recent gains and approaching record territory.

The Dow Jones Industrial Average outperformed, adding 313.69 points for a gain of 0.64 percent, finishing the day at 49,412.40.

The tech-heavy NASDAQ Composite also posted solid gains, climbing 100.11 points, or 0.43 percent, to settle at 23,601.36.

Analysts attributed the U.S. market's strength to resilient corporate earnings expectations and optimism about the economic outlook. The divergence with the Canadian market suggested a focus on sector-specific performances, with the TSX often more heavily weighted toward resource and financial stocks.

The gains put the S&P 500 and Dow Jones near their recent all-time highs as investors continue to assess the path of interest rates and economic growth.

U.S. Dollar Friendless in Monday's Trading as Risk Sentiment Accelerates

The U.S. dollar was shunned again Monday, slumping against most major peers.

The euro advanced, with EUR/USD rising 0.43 percent to trade at 1.1877.

The British pound also climbed, as GBP/USD gained 0.31 percent to 1.3679.

Commodity-linked currencies saw stronger buying, with the Australian dollar (AUD/USD) up 0.34 percent to 0.6917 and the New Zealand dollar (NZD/USD) leading the group with a 0.51 percent gain to 0.5975.

Bucking the trend, the USD/CAD pair edged 0.14 percent higher to 1.3715.

The USD/JPY shed 1.01 percent to 154.16, while USD/CHF dived 0.42 percent to 0.7767.

Confifence in the U.S. dollar has ebbed during U.D. President Donald Trump's second term, down 10 percent, while the price of gold has surged. Monday's moves set a tentative tone for a week filled with key economic data releases and central bank speaker comments.

Global Markets Show Mixed Performance to Start the Week, South African bourse has stand-out day

Global equity markets presented a patchwork of gains and losses on Monday, as investors weighed regional economic data and corporate earnings prospects.

In South Africa the Top 40 USD Index led the global gainers with an impressive rally of 3.38 percent.

In contrast to U.S. markets, the S&P/TSX Composite Index in Toronto bucked the positive trend, dipping 51.66 points, or 0.16 percent, to close at 33,093.32.

The UK's FTSE 100 edged higher, closing at 10,148.85, a gain of 5.41 points or 0.05 percent. 

In Europe, major indices finished with modest movements. Germany's DAX advanced 32.37 points to 24,933.08, rising 0.13 percent.

In contrast, in France the CAC 40 dipped 11.90 points, or 0.15 percent, to settle at 8,131.15.

The broader EURO STOXX 50 rose 0.16 percent to 5,957.80, while Belgium's BEL 20 outperformed the region, climbing 0.31 percent to 5,332.66.

Asian-Pacific markets were similarly divided. Hong Kong's Hang Seng Index added a marginal 0.06 percent to close at 26,765.52. 

Mainland China's SSE Composite Index was relatively flat, slipping just 0.09 percent.

In ndonesia the IDX Composite gained 0.27 percent, and Taiwan's TWII rose 0.32 percent.

In Malaysia Monday, the FTSE Bursa Malaysia KLCI was a notable outperformer, jumping 1.40 percent. However, Singapore's STI Index fell 0.62 percent, and South Korea's KOSPI dropped 0.81 percent.

Australian markets were closed to observe the national Australia Day celebrations.

Meanwhile in New Zealand the S&P/NZX 50 posted a slight gain of 0.09 percent.

The session's most significant declines came from two major Asian economies. Japan's Nikkei 225 tumbled 961.62 points, or 1.79 percent, to 52,885.25.

In India the S&P BSE SENSEX also saw substantial selling, dropping 769.66 points, or 0.94 percent, to end at 81,537.70. 

Markets in the Middle East delivered strong performances. Egypt's EGX 30 surged 1.39 percent, while in Israel the TA-125 climbed 0.48 percent.

Analysts noted the lack of a unified direction, attributing the moves to localized factors and a cautious stance from investors awaiting further central bank policy signals and key inflation data later in the week.

(This report incorporates quotes retrieved with the assistance of artificial intelligence).

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