London’s FTSE should open 2 points below at 7,065, Germany’s DAX dropping 39 points at 15,653, France’s CAC 40 below 13 points at 6,500, and Italy’s FTSE MIB 1 point under at 25,520, as stated by IG.
The cautious origin for European stocks follows a similar viewpoint elsewhere. For example, in Asia-Pacific overnight, markets were mixed as investors responded to Chinese trade data for May.
As stated in customs data published Monday, China’s exports in dollar terms increased 27.9% in May, connected to a year earlier. That was more profound than estimates by analysts in a Reuters survey for a 32.1% year-on-year increase in exports.
Meantime, U.S. stock futures were even Monday morning as investors consider the latest labor market data and look ahead to the subsequent inflation reading on Thursday.
Jobs Report Reveals a Drop in Lay-Off Rate
According to Friday’s jobs report, the lay-off rate dropped to 5.8% from 6.1%. Moreover, there were 559,000 new jobs in May.
The information was perceived as strong enough to keep investors’ confidence in the economy but light sufficient to hold the Federal Reserve from speeding to change its easy-money policies.
This week’s primary data event will be May’s Consumer Price Index (CPI), which should happen on Thursday. In April, the CPI rose 4.2% from the previous year, the quickest increase after 2008. If prices proceed to increase, the Federal Reserve could step back from its easy policies.
Investors worldwide will be evaluating the results of the G-7 nations’ reaching an understanding of global tax reform. They will be asking for the world’s largest corporations to pay at most limited a 15% tax on their earnings.
That’s cheaper than the Biden administration’s initial proposal of a minimum 21% tax rate. The proposed rate didn’t earn much enthusiasm in other countries. Nevertheless, major companies, including Facebook and Google, have reacted favorably to the agreement.
There are no significant profits releases on Monday. However, data releases include Swiss lay-off figures for May, German industrial orders in April, and Russia inflation data for May.