Markets Brace for U.S. Inflation Data as Global Events Loom
Stocks remained steady on Monday, as investors awaited key U.S. inflation data. Geopolitical events, including a U.S. tariff deadline and meetings between President Trump and Vladimir Putin, are also in focus. Analysts predict a slight rise in U.S. consumer prices, which could impact Federal Reserve policy.
On Monday, stock markets remained stable near July highs, as investors anticipated key U.S. inflation numbers, which are expected to influence the dollar and bond markets. The financial community is also watching trade and geopolitical developments closely, including a U.S. tariff deadline on China set to expire on Tuesday and upcoming talks between President Trump and Russia's Vladimir Putin regarding the Ukraine crisis.
The S&P 500 futures rose slightly by 0.16%, while Europe's STOXX 600 stayed flat following Asia-Pacific markets gaining 0.3%. Notably, MSCI's global share index is just under its all-time high from late July, buoyed by a robust earnings season in the U.S. and mildly positive results in Europe, overshadowing less favorable U.S. employment data from July.
The week's significant economic focus will be the U.S. consumer prices report, expected on Tuesday. Analysts forecast tariffs to drive core inflation to an annual rate of 3%, surpassing the Federal Reserve's target of 2%. If inflation is higher than predicted, it could deter the expected rate cut in September, although the market currently predicts a 90% likelihood of easing. Additionally, discussions around Jerome Powell's successor and China-U.S. trade agreements add complexity to the macroeconomic landscape.
(With inputs from agencies.)
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