- U.S. stocks were mixed, with little change in U.S. Treasuries
- European stocks down; Government bonds fluctuated in a narrow range
- Asian equities lack a clear direction
On the eve of the release of inflation data, U.S. stocks performed mixed
U.S. stocks had mixed performances on Monday, with consumer price index inflation data due later this week. The S&P 500 closed flat. The Nasdaq rose 0.3% and the Dow Jones Industrial Average fell 0.2%.
U.S. Treasuries were little changed as investors awaited the release of consumer price index and producer price index inflation data this week. The yield on the 10-year Treasury fell 1 basis point to 4.49%.
European stock markets softened on Monday after recent gains. The Dow Jones Europe 50 edged down 0.1%, dragged down by industrials and utilities stocks. Britain's FTSE 100 fell 0.2%.
European government bonds have not made much progress, and investors remain cautious on the eve of the release of important consumer price indices in the United States. The German 10-year government bond yield edged down 1 basis point to 2.51%, while the French 10-year government bond yield was flat at 3.00%. In the UK, the yield on 10-year government bonds edged up 1 basis point to 4.17% on the eve of the release of the UK labour market data.
Major Asian stock markets lacked clear direction on Monday. Japan's Nikkei 225 index edged down 0.1% as the Bank of Japan cut back on conventional bond purchases, sending Japanese government bond yields higher. Chinese equities were mixed, with investors digesting geopolitical risks and mixed macro data released at the end of last week. Hong Kong's Hang Seng Index rose 0.8%, and a number of large technology stocks will report results; China's Shanghai Composite Index fell 0.2%. India's Sensex index rebounded 0.2% after reporting lower last week.
Oil prices rose on Monday as investors waited for the monthly report on global demand and supply from the oil group and the International Energy Agency. U.S. oil prices rose 1.1% to $79.1 in June.
Key data announcements and market events
yesterday
India's headline CPI inflation edged to 4.8% (YoY) in April from 4.9% YoY, broadly in line with expectations.
Economic data released today (14 May 2024)
The UK unemployment rate should edge up by 0.1% to 4.3% in the first quarter of 2024, while average hourly earnings in the private sector are expected to fall to 5.9% (y-o-y) in the first quarter of 2024, compared to 6% (y-o-y) in the three months to February.
US producer price index final demand should rise 0.3% (m/m) in April and 0.2% m/m in March, but still below the uncomfortably strong January and February readings. The NFIB confidence index is likely to fall slightly in April, with high interest rates putting pressure on small businesses.
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