The US session started to pick up as European and US stock market began to gain traction for a second day. All of the three major averages in the US moved to the upside.
In Europe, the German DAX post a +0.73% gain, while France’s CAC moved +1.10% higher. In the United Kingdom, the eked out a FTSE 100 +0.06%, and Spain’s Ibex advanced by +0.81% and Italy’s FTSE MIB traded +0.66% higher.
Crude oil is moving to the upside with a gain of $1.53 or 2.08% at $74.50. That takes the price to the highest level since June 5, while the Swiss franc currency moved to its lowest level in over two years.
On the data front in the United States US Redbook sales data for the current week fell by at -0.4% versus 0.7% last week. The US Redbook declined by -0.4% vs +0.7% last week.
Also, companies begin to announce their second-quarter earnings this week, Goldman Sachs says revisions and early posted results “point to a strong earnings season.”
The June consumer price index report set for release Wednesday, as well as the June producer price index due out Thursday, will shed light on whether the decline in inflation has continued, and create the backdrop for future direction of interest rates.
Fed officials highlighted the need for more rate hikes in order to bring inflation down to the central bank’s target, according to a number of speeches on Monday.
Investors have pencilled in another quarter-point increase at the Federal Reserve’s July 25-26 meeting. But they are undecided about what the central bank will do at its September meeting after last week’s continued robust jobs data raised concern that policymakers will revert to raising rates following the June pause.