Global stocks rose on Monday ahead of a busy week.
Markets prepare for US inflation data on Tuesday where inflation is expected to come in at 6.2% yoy from 6.5%. The key inflation data will give markets a sense of direction for the upcoming Fed meeting in March where a 25bps hike seems likely given an inflation number of 6.2% this Tuesday.
Last week saw a 5 day US equities decline, whilst bond yields soared following US employment data that came as a huge surprise to markets. Last weeks data showed that the US economy added 517,000 jobs, obliterating a consensus value of 187,000. Given the tight labour market, Tuesday’s inflation print is crucial in assessing the Fed stance on the pace of future rate hikes.