Stocks edge higher as markets focus on inflation data

Stocks edge higher as inflation data anticipated

Stocks edged higher as markets reopened in Europe and the US, with traders focusing on upcoming inflation data and central bank statements. Europe’s Stoxx 600 remained steady, while US stock futures saw a slight increase. Key inflation reports and the transition to a “T+1” settlement rule for US equities are being closely monitored.

Stocks edge higher as inflation data anticipated

Stocks rose slightly as markets reopened in Europe and the US, with traders anticipating inflation data and central bank statements for clues on interest-rate cuts.

Europe’s Stoxx 600 remained steady, on track for a 3.5% gain in May, while US stock futures climbed 0.3%. The 10-year Treasury yield fell by two basis points, and the dollar remained stable. Brent crude prices were flat despite rising Middle East tensions.

In April, eurozone consumer inflation expectations eased slightly. The Federal Reserve’s key inflation measure, due Friday, is expected to show modest relief. ECB’s Klaas Knot speaks Tuesday, with Fed officials Lisa Cook and Neel Kashkari also scheduled to speak this week.

“We are very much on inflation data watch,” said Marija Veitmane, senior multi-asset strategist at State Street Global Markets. “Large-cap growth stocks will be leading.”

 

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The ECB’s next rate decision is on June 6. France’s Francois Villeroy de Galhau suggested possible rate cuts in June and July, though some policymakers oppose consecutive cuts.

Traders are also watching the shift to the “T+1” rule, which shortens US equity settlement times from two days to one, raising concerns about potential issues in the transition.

Wall Street adopts T+1 stock trading

Bitcoin fell as traders monitored movements by wallets linked to the defunct Mt. Gox exchange, with efforts underway to return $9 billion in Bitcoin to creditors.

 

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