European markets climb to start a week set to be dominated by U.S. inflation data
The pan-European Stoxx 600 added 0.6% in early trade, with basic resources climbing 1.5% to lead gains as most sectors and major bourses entered positive territory.
The positive start for European stocks comes after markets closed lower last Friday 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 rising interest rates as a result of the better-than-expected data.
The latest U.S. inflation reading at the end of the week will be a key focus for markets. May’s consumer price index in the U.S. is expected to be just slightly cooler than April, and some economists are expecting it could confirm that inflation has peaked.
The University of Michigan consumer sentiment index, also due Friday, will also be closely watched by investors.
U.S. stock futures were little changed in overnight trading Sunday after a losing week as investors continued to bet that the Federal Reserve will tighten monetary policy aggressively to combat surging inflation. Meanwhile, shares in Asia-Pacific were mixed Monday as a private survey showed another contraction in China’s service sector activity for May.
There are no major earnings or data releases in Europe on Monday.
