Wall Street stocks finished mixed on Monday while European markets recovered from heavy selling last week, as traders awaited key US inflation data amid concerns over the prospect of another interest rate hike next month.
Several Federal Reserve decision-makers have warned recently that more tightening could be warranted to bring prices under control, tempering optimism that its hiking cycle had come to an end.
That sparked a sell-off on Friday, though a tech-led surge on Wall Street before the weekend provided traders in Asia with some support on Monday, and the positivity spilled over into Europe.
The Dow Jones Industrial Average rose 0.2 percent, while the broad-based S&P 500 Index and the tech-rich Nasdaq Composite Index both declined.
Across the Atlantic Ocean, major European indices in London, Paris, and Frankfurt all saw gains.
The closely watched consumer price index (CPI), a gauge of inflation, will be published Tuesday, shedding light on the Fed's progress in its fight against high inflation.
Although the CPI has dropped sharply since peaking at more than nine percent last year, it remains elevated, keeping up the pressure on the Fed to act.
"I think everyone is waiting for the inflation report," Jack Ablin from Cresset Capital told AFP.
A higher reading would likely reinforce expectations that more rate increases are in the cards, raising borrowing costs for businesses and consumers alike, and weighing on growth.
However, most analysts expect data to show that the CPI eased in October, solidifying the likelihood that the Fed is done raising rates.
Investors will also watch a meeting between US President Joe Biden and Chinese leader Xi Jinping at the APEC summit in San Francisco later in the week, amid signs of a possible thaw in tensions between the world's largest economies.
Chinese officials said the two would discuss "global peace and development."
Oil prices found support following weeks of retreat after the release of OPEC's monthly report for October predicted "healthy" demand through 2024 despite the war between Israel and Hamas militants in Gaza and the fears of slowing growth worldwide.
But OEPC heavyweights Saudi Arabia and Russia could signal continued supply cuts at a November 26 ministerial meeting in response to the recent price weakness.
"This should therefore limit the downside potential," said Fawad Razaqzada, market analyst at StoneX.