Equity futures in the United States jumped on Monday, while the dollar weakened somewhat against its global peers, as investors slowed down in a week bereft of earnings and economic data focused on the world''s largest economy.
With continued supply-chain disruptions and rising food prices, global inflation figures continue to increase, with the G-7 average now reaching a new high of 2.9 percent.
Even in the midst of the fastest inflation in 40 years, greater economic growth continues to surprise to the upside, with last week''s May jobs report revealing a modest decrease in monthly wage gains amid a greater 390,000 increase in headline employment. ISM data also revealed a faster-than-forecast pace for manufacturing activity last month.
These statements have given rise to bets that the Federal Reserve can ''thread the needle'' in terms of lowering rates high enough to cut out inflation, but not so high as to stutter-off economic growth.
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The Commerce Department''s May CPI reading gives policymakers a closer look at inflation momentum as they analyze successive rate rises for consumer pricing dynamics and the broader economy.
Analysts are looking for a headline reading of 8.3%, essentially unchanged from April, with modestly decreasing core prices on a monthly and annual basis.
The CME Group''s FedWatch tool suggests a 94.9 percent chance of a 50 basis point rate rise next week, which would lead the Fed''s target rate to 1.25% to 1.5%, with traders then wondering if inflation will push -- resulting in bigger hikes in the near-term -- or moderate, indicating the prospect of a "pause" in the Fed''s decision later this fall.
Commerce Secretary Gina Raimondo said President Joe Biden might eliminate Trump-era tariffs on China-made imports, and added a tailwind to sentiment, although a much lower-than-expected reading for services sector growth in the world''s second largest economy, which is still suffering from Beijing''s lockdown policies.
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Stocks Increase, Inflation In Focus, Tesla, Apple, and Boris Johnson - Five Things You Must Know
China''s stock market has received a boost, but investors have increased in response to fresh incentives from Beijing, boosting the region''s MSCI ex-Japan benchmark to 0.77% gains before trading closes. The Nikkei 225, ranked 0.56% higher, compared by the energy sector, at 27,985.89 points.
Despite a ''no-confidence'' vote on Prime Minister Boris Johnson, Europe''s Stoxx 600 gained 0.86% during mid-day trading in Frankfurt. The UK''s FTSE 100 was sharp 0.98% higher.
Today, Johnson, who represents Britain''s Conservative Party, was told that more than 54 Parliamentary colleagues had signed a letter seeking his removal, achieving this goal that would meet the demand for a "no-confidence" vote from elected party members.
Johnson requires the support of at least 50% of Conservative lawmakers, plus one, which sets a threshold of 180 votes. If he gains those votes, he will not be challenged for at least another year, but he may be put on administrative leave following a leadership contest.
During European trading hours, benchmark 10-year Treasury notes rates climbed to 2.951, while the dollar index, which tracks the greenback against a range of its global peers, was marked 0.28% down at 101.855 points.
Futures linked to the Dow Jones Industrial Average are indicating a 280 point opening bell advance, while those linked to the S&P 500, which is down 13.8% for the year, are priced for a 45 point increase to the upside. Futures linked to the Nasdaq are looking at a 185 point opening bell gain.
Get Tesla Inc Reportshares were once again active in pre-market trading, up 3.8 percent, as CEO Elon Musk appeared to reverse course over the weekend on her earlier warning of job cuts at the clean-energy company.
Get Apple Inc. Reportshares rose 1.4 percent ahead of the tech giant''s closely-watched developers conference, which begins later today at its California campus.
Get Eli Lilly and Company Reportshares also moved higher after the drugmaker published final findings from a large clinical trial that showed a reduction in heart failure risk for type-2 diabetic patients.