Equities rose on Monday ahead of the release of key data which will shed light on the health of the economy
On Monday, Wall Street experienced slight gains, while oil prices and the dollar declined. Investors were analysing Chinese economic data and looking ahead to a crucial U.S. inflation report and corporate earnings.
U.S. stocks saw modest increases, with the Dow Jones Industrial Average rising by 0.62%, the S&P 500 gaining 0.24%, and the Nasdaq Composite adding 0.18%.
In Europe, shares also inched higher, with the travel and leisure sector leading the gains. The pan-European STOXX 600 index finished up 0.18%.
Chinese consumer price figures for June showed a minimal change compared to the previous year, while producer prices further declined into negative territory. This weakness suggests the possibility of additional monetary policy easing in China.
However, it also highlights the challenge the country faces in reflating its economy and avoiding deflation.
Citigroup downgraded U.S. stocks, anticipating a pullback in growth equities and a fourth-quarter recession. Instead, the brokerage firm upgraded its rating on beaten-down European counterparts.
After a strong rally in the first half of the year, Citigroup shifted its rating on U.S. stocks from “overweight” to “neutral.” It cautioned that growth stocks could experience a pullback as the excitement around artificial intelligence enters a more “digestive” phase.
Investors are closely monitoring these developments and eagerly awaiting the U.S. inflation report and upcoming corporate earnings to gain further insights into the market’s trajectory.
