Stocks gave up early gains Monday as uncertainty over the prospect of tariffs undid some of the market’s recent job-driven advances.
The S&P 500 Index rallied 3.5% last week, with the biggest gains coming after a labour market report underscored economic strength that gave fresh impetus to the nine-year-old bull market in global equities.
Investor focus today will be on the latest U.S. inflation report to be released this afternoon. The importance of inflation data relates to Federal Reserve policy and whether it would offer clues on the pace of tightening.
Other important economic releases this week will be Chinese industrial production, retail sales and fixed-asset investment Wednesday.
European stocks advanced for a sixth session, the longest streak of gains since October, as a rally in utilities offset losses in industrial shares.
Uncertainty remains for Italian politics as the acting leader of Italy’s ruling Democratic Party rejected approaches from both the centre-right and the anti-establishment Five Star Movement to strike a deal. The Democratic Party is in a position to form a majority with either of the two main groups but is divided on how to respond to approaches from Five Star and from the centre-right which is led by the anti-migrant Northern League.
In Asia overnight, Chinese shares retreated 0.5% whilst Japanese equities gained 0.7% boosted by electronics makers and services companies.