{"id":127017,"date":"2021-05-31T13:25:45","date_gmt":"2021-05-31T13:25:45","guid":{"rendered":"https:\/\/precoinnews.com\/?p=127017"},"modified":"2021-05-31T13:25:45","modified_gmt":"2021-05-31T13:25:45","slug":"world-stocks-set-for-4th-month-of-gains-in-data-heavy-week","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/business\/world-stocks-set-for-4th-month-of-gains-in-data-heavy-week\/","title":{"rendered":"World stocks set for 4th month of gains in data-heavy week"},"content":{"rendered":"
LONDON (Reuters) – World equities were firmly on track to post a fourth straight month of gains on Monday, while the dollar struggled broadly ahead of a slew of European and U.S. data this week that will provide a clearer picture on the global economy\u2019s recovery path.<\/p> MSCI\u2019s broadest index of world stocks drifted 0.1% higher, putting the gauge on track for a 1.4% gain for May. It is the longest monthly rising streak for the index since August 2020, when it marked a five-month run of gains, according to Refinitiv data.<\/p>\n But U.S. stock futures and European cash equities trading was quiet on Monday due to holidays in the United States and Britain, with benchmark indexes sticking to well-worn ranges.<\/p>\n May has proven to be a decent month for asset markets, but policymakers are increasingly faced with the dilemma that inflation is running hot while the underlying structural economy is still struggling to gain traction.<\/p>\n The main event of the week will be U.S. payrolls on Friday with median forecasts at 650,000, but the outcome is uncertain following April\u2019s unexpectedly weak 266,000 gain.<\/p>\n Although U.S. inflation data last week was above estimates, another big miss on the jobs front would heap pressure on the Fed to postpone plans to wind down its stimulus.<\/p>\n \u201cThe question is, therefore, whether by September the Federal Reserve will be in a position to announce a tapering of its bond purchases starting next year, and the odds are quite decent though it might be delayed to December,\u201d said Sebastien Galy, a strategist at Societe Generale.<\/p>\n The Fed next meets on June 16, and this week will be the last chance for members to discuss policy before a pre-meeting blackout period starts on June 5.<\/p>\n So far, investors have taken the Fed at its word that the labour market needs to improve a lot more before it speaks of tapering. That helped yields on U.S. 10-year notes ease to 1.58% with Fed funds futures pricing in a first rate hike by the first quarter of 2023.<\/p>\n Asian shares edged higher, and in Europe indexes consolidated gains after last week\u2019s record close ahead of manufacturing PMI data on Tuesday.<\/p>\n Among central banks debating inflation trends, the European Central Bank is perhaps the outlier with both policymakers and investors on the same page when it comes to expecting a return to below-target inflation, according to Ulrich Leuchtmann, head of FX and commodity research at Commerzbank.<\/p>\n That was evident in the bond markets too, where yields on benchmark German debt remained well below recent highs.<\/p>\n A dovish Fed has also put the greenback under pressure against its rivals with the dollar recouping some of its losses after hitting a three-year low against the Chinese yuan.<\/p>\n The yuan was the big mover in global currency markets after policymakers directed financial institutions to hold more foreign exchange in reserves, a move that analysts say was aimed at curbing yuan strength.<\/p>\n In the offshore markets, the yuan currency weakened 0.23% versus the U.S. dollar with analysts at ING arguing that Beijing\u2019s latest move will slow the currency\u2019s rise but won\u2019t halt it completely.<\/p>\n Concerns about global inflation and slowing growth have proved to be a boon for gold, with prices for the yellow metal rising 8% this month, vaulting comfortably above $1,900.<\/p>\n Oil prices were firm after gaining more than 5% last week to reach two-year closing highs as expectations of a rebound in global demand outweighed concerns about more supply from Iran once sanctions are lifted. [O\/R]<\/p>\n All eyes will be on OPEC this week as it reviews its supply agreement, and any hint of an increase in output could pressure prices.<\/p>\n Brent added 38 cents to $69.10 a barrel, while U.S. crude rose 39 cents to $66.71.<\/p>\n Unusually quiet cryptocurrencies showed some signs of volatility in holiday-stricken trading with bitcoin rising 4% to $37,000 while its smaller rival Ethereum climbed 8% to $2,578.<\/p>\nYUAN PRESSURE<\/h2>\n