Stocks and US equity futures showed mostly minor movements as investors geared up for a busy week. It includes key events such as US inflation data, a European Central Bank interest rate decision, and the start of the first-quarter earnings season.
Mining stocks drove gains in Europe on Monday following a rebound in iron ore prices, resulting in a slight increase in the regional Stoxx 600 Index.
Contracts for the S&P 500 and the Nasdaq 100 remained relatively unchanged after a strong finish on Wall Street on Friday, spurred by impressive US labor-market figures.
Treasury yields declined as traders tempered expectations of Federal Reserve rate cuts, while the dollar held steady.
Tesla Inc. saw a rally of up to 4.2% in US premarket trading, potentially offsetting some of its 34% year-to-date decline.
Tesla has scheduled its new robotaxi’s launch on August 8, according to Chief Executive Officer Elon Musk’s announcement on X Friday.
Shares in companies linked to cryptocurrencies also rose as Bitcoin climbed back above the $71,000 mark, advancing for a third consecutive session.
The latest US jobs report surpassed expectations for the fifth consecutive month, reinforcing the Fed’s patient approach to rate cuts. The focus now shifts to Wednesday’s US consumer price data, expected to provide further evidence of a gradual cooling in inflation.
Madison Faller, global investment strategist at JPMorgan Private Bank, stated on Bloomberg Television,
“The expectation is for a rate cut by the Federal Reserve in June, but another high CPI print could delay this,” adding, “As for the ECB, no monumental actions are expected, but confirmation of rhetoric regarding rate changes starting in June would be significant.”
Oil prices retreated from a five-month high after Israel announced plans to withdraw some troops from Gaza.
The recent rally in crude oil was driven by escalating geopolitical tensions and supply shocks, raising the possibility of global benchmark Brent prices reaching triple digits and complicating the outlook for inflation.
