(Bloomberg) — Stocks took a breather on Monday as investors awaited key data later this week that may cast light on the outlook for interest rates on both sides of the Atlantic.
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The Stoxx Europe 600 index was little changed after posting its best weekly return since January amid optimism the European Central Bank is poised to ease policy as soon as next month. Futures on the S&P 500 and Nasdaq 100 edged higher. Treasury yields and the dollar were steady.
All eyes will be on US producer prices due Tuesday, ahead of April’s inflation print the next day. Data last week pointed to an economy that is slowing amid stubborn inflation, posing a challenge to the outlook for Federal Reserve policy. First-quarter GDP and employment data for the euro region are also due Wednesday.
“We need a catalyst to break the range on rates or change our view on risky assets,” said Mohit Kumar, chief economist for Europe at Jefferies International. “US CPI data this week could be a potential catalyst. Even though US data has started to show some signs of moderating, inflation remains sticky, creating fears of stagflation.”
The euro-area economy, on the other hand, will expand more quickly than previously thought this year as the bloc’s biggest member, Germany, exits more than a year of near-stagnation, a Bloomberg poll of analysts showed. The results capture the improving mood in the region, with first-quarter GDP readings surprising to the upside and inflation is receding toward 2%.
Among individual movers in Europe, AP Moller-Maersk A/S jumped as much as 10% in Copenhagen after analysts at Citigroup Global Markets lifted their earnings estimates on the stock to reflect a recent rise in freight rates. Shell Plc rose to a record in London.
Asian stocks were mixed. Hong Kong’s equity benchmark climbed to the highest since August, and mainland China equities also rose. But shares in South Korea, Japan and Australia fell.
News of the China’s plan to sell ultra-long special bonds boosted sentiment after weak data from the country published over the…
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