... but more nuance on inflation

Investing.com - European stocks edged higher Monday as investors digested the ongoing conflict in the Middle East ahead of a series of central bank meetings this week, including by the Federal Reserve, and a G7 meeting in Canada. At 03:05 ET (07:05 GMT), the DAX index in Germany gained 0.4%, the CAC 40 in France advanced 0.4% and the FTSE 100 in the U.K. rose 0.2%. Israel-Iran conflict continues Israel and Iran have continued to exchange missile attacks and airstrikes over the weekend, escalating the conflict started by Israel launching a large‑scale airstrike on a number of Iranian military and nuclear targets on Friday. This has hit global sentiment and caused oil prices to jump higher, this conflict, so far, does not look like spreading wider and crucially, investors seem to be assuming Iran will not threaten to close the Strait of Hormuz to global shipping as that would risk dragging the United States into the conflict. Fed leads central bank barrage This rise in energy prices could add an extra complication for Federal Reserve policymakers as they get together this week to decide on monetary policy, as they attempt a balancing act between concerns about a weakening labor market and still above-target inflation. The U.S. central bank has maintained the fed funds rate at 4.25%-4.50% since it last eased in December, and is widely expected to hold interest rates steady once more when it announces its decision on Wednesday. Investors will be looking for any hints about whether the Fed might be poised to lower rates in the coming months, or whether the Trump administration’s chaotic trade policies will prolong the current ‘on-hold’ stance. It’s a busy week for central banks in general, with the Bank of Japan expected to stand pat on Tuesday, as are the Bank of England and Norges Bank later in the week. Sweden’s Riksbank is likely to cut rates, and the Swiss National Bank could return to negative rates given the strength of the franc. G7 summit in focus The Group of Seven industrialized nations are meeting in Canada for the next few days, in what could be a tense gathering given the moves by U.S. President Donald to impose tariffs on allies. Canadian Prime Minister Mark Carney, who heads up the summit, has said his priorities are strengthening peace and security, building critical mineral supply chains and creating jobs. But issues such as U.S. tariffs and the conflicts in the Middle East and Ukraine are expected to feature heavily during the summit. New CEO for Kering - report In the corporate sector, Kering (EPA:PRTP) is in the spotlight after Le Figaro newspaper reported that Luca de Meo would become the new CEO of the luxury goods maker, leaving troubled automaker Renault (EPA:RENA) after five years at its helm. Entain (LON:ENT), the owner of betting company Ladbrokes (LON:LCL), said BetMGM, its U.S. sports-betting joint venture with MGM Resorts (NYSE:MGM), raised its annual revenue and core earnings forecast, driven by strong growth in its iGaming and online sports divisions. Crude gains on Middle East tensions Oil prices rose Monday, adding to previous gains as renewed strikes by Israel and Iran over the weekend increased concerns that crude supplies from this oil-rich region could be disrupted. At 03:05 ET, Brent futures climbed 1% to $74.97 a barrel and U.S. West Texas Intermediate crude futures rose 1.1% to $72.05 a barrel. Both benchmarks settled 7% higher on Friday, having jumped more than 13% during the session to their highest levels since January, on fears the conflict between Iran and Israel could lead to a broader regional conflict, hitting crude supplies.

Asia stocks steady amid M.East tensions; c.bank meetings loom  Investing.com

Investing.com-- Most Asian stocks moved little on Monday as a sustained conflict between Iran and Israel kept risk appetite on the backfoot, as did anticipation of a barrage of central bank meetings this week. Mixed economic readings from China kept local stocks trading sideways. Regional markets took middling cues from a largely negative session on Wall Street, as the conflict in the Middle East battered risk assets. But S&P 500 Futures rose marginally in Asian trade, indicating that Wall Street may be attempting a recovery after Friday’s losses. Focus this week is squarely on a barrage of central bank meetings, starting with the Bank of Japan on Tuesday. The Federal Reserve is set to decide on rates on Wednesday, while the Bank of England, Swiss National Bank, and the People’s Bank of China will also decide on rates later this week. Chinese stocks flat after mixed industrial prod, retail sales data China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes moved less than 0.1% each, while Hong Kong’s Hang Seng index lost 0.2%. Government data released on Monday showed Chinese industrial production grew slightly less than expected in May, amid increased pressure from U.S. trade tariffs. But Chinese retail sales growth blew past expectations, signaling some resilience in consumer spending despite increased economic uncertainty. The mixed economic prints sparked even more uncertainty over the Chinese economy, as it grapples with a U.S. trade war and a sustained deflationary trend. Washington and Beijing had last week announced some progress in their trade negotiations, although no permanent deal was announced. Reuters reported that the recent deal also left the issue of China’s rare earth export controls unresolved, amid mounting concerns over supply shortages. The PBOC is set to decide on its benchmark loan prime rate later this week, after cutting the rate earlier this year. Japan’s Nikkei 22 upbeat before BOJ rate decision Japanese stocks outpaced their peers on Monday, with the Nikkei 225 adding 1%, while the TOPIX rose 0.6%. Focus was largely on the BOJ, which is set to leave interest rates unchanged on Tuesday. But traders are growing increasingly confident that the central bank will raise interest rates by July, especially amid increasing Japanese inflation and signs of resilience in the economy. Inflation is expected to be further underpinned by recent wage hikes in the country, giving the BOJ more impetus to hike rates. Governor Kazuo Ueda said as much in a parliamentary address last week, stating that the BOJ will hike rates further as inflation rises. Broader Asian markets were a mixed bag as investors grappled with heightened tensions in the Middle East and persistent uncertainty over U.S. trade policy. South Korea’s KOSPI continued to outperform after investors welcomed the liberal party winning the presidential election earlier this month. The KOSPI rose 0.7% was close to a 3-½ year high. Australia’s ASX 200 rose 0.1%, buoyed chiefly by an over 10% surge in gas major Santos Ltd (ASX:STO), which received a $18.7 billion takeover offer from a consortium led by Abu Dhabi National Oil Company. Gift Nifty 50 Futures for India’s Nifty 50 index rose 0.2%, pointing to a positive open. Should you invest $2,000 in STO right now? Before you buy stock in STO, consider this: ProPicks AI are 6 easy-to-follow model portfolios created by Investing.com for building wealth by identifying winning stocks and letting them run. Over 150,000 paying members trust ProPicks to find new stocks to buy – driven by AI. The ProPicks AI algorithm has just identified the best stocks for investors to buy now. The stocks that made the cut could produce enormous returns in the coming years. Is STO one of them?

... for the trade negotiations