Stocks Rise as Traders Await Inflation Cues: Markets Wrap

　　The Stoxx 600 Index edged up 0.4%, led by auto shares which benefited from news that China and the European Union have agreed to start talks on the blocs plan to slap tariffs on electric vehicle imports. However, European markets are likely to stay under pressure ahead of the first voting round of the parliamentary election on Sunday, with polls showing further gains for the far-right National Rally.

　　S&P 500 equity futures advanced by about 0.2%, while a gauge of dollar strength eased, having enjoyed a five-week rally.

　　Markets are at a critical juncture heading into the second half of 2024, with an uncertain outlook for central-bank policy rates. The picture is also muddied by a series of upcoming elections — focus this week will be on the first US presidential debate between Joe Biden and challenger Donald Trump. Friday will bring inflation data from the euro area as well as the Federal Reserves preferred gauge of consumer costs, the PCE deflator.

　　“This week is relatively data-light except for the key PCE data which will be a big driver, and the Trump-Biden debate will be a major event,” said Elias Haddad, a strategist at Brown Brothers Harriman.

　　He said French political risks and robust US growth would continue to give the US an edge, potentially supporting the dollar uptrend.

　　The outlook hinges to a large extent on whether the Federal Reserves favored inflation yardstick shows a softer monthly advance in price growth. Economists expect the month-on-month figure to slow significantly, which could well pave way for officials to begin lowering interest rates by September.

　　In Paris, Eurofins Scientific SE dropped as much as 24% after Muddy Waters Capital LLC disclosed a short position in the laboratory services firm.

　　In New York premarket trading, Broadcom Inc. rose as much as 1.4% after Reuters reported the semiconductor device maker is working with ByteDance on developing an advanced AI processor, while Micron Technology Inc rose ahead of its earnings report due Wednesday.

　　Earlier, the Japanese yen held near 160 per dollar as top currency official Masato Kanda said authorities are ready to intervene to support it 24 hours a day, if needed.

　　Story continues

　　Key events this week:

• 　　Bank of Canada Governor Tiff Macklem speaks, Monday

• 　　San Francisco Fed President Mary Daly speaks, Monday

• 　　Fed Governor Christopher Waller speaks, Monday

• 　　Canada CPI, Tuesday

• 　　US Conference Board consumer confidence, Tuesday

• 　　Fed Governor Lisa Cook, Fed Governor Michelle Bowman speaks, Tuesday

• 　　Australia CPI, Wednesday

• 　　UK Prime Minister Rishi Sunak and Labour leader Keir Starmer debate, Wednesday

• 　　Bank of Finlands 3rd International Monetary Policy Conference begins, Wednesday

• 　　RBA Deputy Governor Andrew Hauser speaks, Thursday

• 　　Japan retail sales, Thursday

• 　　Philippines rate decision, Thursday

• 　　China industrial profits, Thursday

• 　　Eurozone economic confidence, consumer confidence, Thursday

• 　　BOE releases financial stability report, Thursday

• 　　Sweden rate decision, Thursday

• 　　Turkey rate decision, Thursday

• 　　US durable goods, initial jobless claims, GDP, wholesale inventories, Thursday

• 　　Mexico rate decision, Thursday

• 　　Japan Tokyo CPI, unemployment, industrial production, Friday

• 　　UK GDP, Friday

• 　　France, Italy, Spain CPI, Friday

• 　　US PCE inflation, spending and income, University of Michigan consumer sentiment, Friday

• 　　Richmond Fed President Thomas Barkin speaks, Friday

• 　　Colombia rate decision, Friday

　　Some of the main moves in markets:

　　Stocks

• 　　The Stoxx Europe 600 rose 0.4% as of 9:47 a.m. London time

• 　　S&P 500 futures rose 0.2%

• 　　Nasdaq 100 futures rose 0.2%

• 　　Futures on the Dow Jones Industrial Average rose 0.2%

• 　　The MSCI Asia Pacific Index fell 0.2%

• 　　The MSCI Emerging Markets Index fell 0.3%

　　Currencies

• 　　The Bloomberg Dollar Spot Index fell 0.1%

• 　　The euro rose 0.2% to $1.0717

• 　　The Japanese yen was little changed at 159.76 per dollar

• 　　The offshore yuan was little changed at 7.2887 per dollar

• 　　The British pound rose 0.1% to $1.2662

　　Cryptocurrencies

• 　　Bitcoin fell 1.3% to $62,868.1

• 　　Ether fell 1.3% to $3,388.71

　　Bonds

• 　　The yield on 10-year Treasuries declined one basis point to 4.25%

• 　　Germanys 10-year yield was little changed at 2.40%

• 　　Britains 10-year yield declined two basis points to 4.06%

　　Commodities

• 　　Brent crude rose 0.2% to $85.43 a barrel

• 　　Spot gold rose 0.3% to $2,329.95 an ounce