U.S. and European stocks largely stalled during pre-market trading on Monday ahead of a major week of economic data that will provide investors with an insight into the health of the U.S. economy. Futures on the benchmark S&P 500 as well as the Dow Jones Industrial Average remained relatively unchanged, while contracts on the tech-heavy Nasdaq 100 edged 0.2% higher. The Stoxx Europe 600 stagnated as well, remaining little changed.
The US Consumer Price Index (CPI), set to be released on Wednesday, is expected to show a 0.2% rise from June for both the headline figure as well as core CPI, which strips out volatile energy and food costs. This is expected to put investors at ease as markets remain stable, however, it may not be enough to sway the Federal Reserve’s interest rate policy over the near term.
“Markets are looking for better growth or more policy support to get excited again,” Morgan Stanley analysts wrote in a note to investors, suggesting that stable markets may not convince investors to get enthusiastic about upping their investments unless actual positive change is realized. “We don’t see confirming evidence in either direction near term, leaving the index to trade in a tight range for now.”