European stocks are rising ahead of key U.S. economic data this week, including the latest
inflation data.
The pan-European Stoxx 600 index gained 0.9%, with technology stocks increasing 2% to lead
gains as most sectors and major bourses entered positive territory.
The strong start to the trading week comes after European markets closed lower last Friday
(June 3) after data showed the U.S. economy added 390,000 jobs in May. U.S. and European
stocks slid as investors assessed the potential for more interest rate increases as a result of the
better-than-expected data.
The latest U.S. inflation reading at the end of this week (June 10) will be a key focus for
investors. May’s consumer price index in the U.S. is expected to be just slightly lower than
April’s reading, and some economists are expecting it could confirm that inflation has peaked.
U.S. stock futures are up in premarket trading today (June 6), looking to rebound after a losing
week as investors continued to bet that the U.S. Federal Reserve will tighten monetary policy
aggressively to combat surging inflation.
Shares in Asia-Pacific are mixed as data showed another contraction in China’s service sector
activity for May due to COVID-19 lockdowns.
Attention in the U.K. on Monday will turn to domestic politics, with British Prime Minister Boris
Johnson facing a vote of confidence from members of his Conservative Party amid rising
dissatisfaction with his leadership.
