WASHINGTON (dpa-AFX) - The major U.S. index futures are currently pointing
to a modestly higher open on Monday, with stocks likely to add to the strong
gains posted last week.

The markets may continue to benefit from recent upward momentum, which has led
to an eight-day winning streak for the Dow.

Renewed optimism about an interest rate cut by Federal Reserve in the coming
months has contributed to the recent strength, although key inflation data due
this week could have a significant impact on the outlook for rates.

The Labor Department is scheduled to release its reports on producer and
consumer price inflation on Tuesday and Wednesday, respectively.

Economists expect producer prices to rise by 0.3 percent in April after edging
up by 0.2 percent in March, while the annual rate of growth is expected to tick
up to 2.2 percent from 2.1 percent.

Consumer prices are expected to climb by 0.4 percent in April, matching the
increase seen in March. Core consumer prices, which exclude food and energy
prices, are expected to rise by 0.3 percent in April after climbing by 0.4
percent in March.

The annual rate of consumer price growth is expected to dip to 3.4 percent in
April from 3.4 percent in March, while the annual rate of core consumer price
growth is expected to slow to 3.6 percent from 3.8 percent.

Remarks by Fed Chair Jerome Powell may also attract attention this week along
with reports on retail sales, industrial production and housing starts.

Stocks moved to the upside early in the session on Friday but showed a lack of
direction over the remainder of the trading day. The major averages eventually
ended the day mixed, although the Dow closed higher for the eighth consecutive
session.

While the tech-heavy Nasdaq edged down 5.40 points or less than a tenth of a
percent to 16,340.87, the S&P 500 crept up 8.60 points or 0.2 percent to
5,222.68 and the Dow rose 125.08 points or 0.3 percent to a new one-month
closing high of 39,512.84.

For the week, the Nasdaq jumped by 1.1 percent, while the S&P 500 and the Dow
surged by 1.9 percent and 2.2 percent, respectively.

The early strength on Wall Street partly reflected recently renewed optimism
about the outlook for interest rates. Recent data has pointed to some softness
in the U.S. labor market, increasing investor confidence the Federal Reserve
will lower interest rates in the coming months.

While the Fed is still widely expected to leave interest rates unchanged in
June, there is a 74.2 percent chance rates will be lower by September, according
to CME Group's FedWatch Tool.

However, the early buying interest was partly offset by the release of a report
from the University of Michigan showing a substantial deterioration in U.S.
consumer sentiment in the month of May.

The University of Michigan said its consumer sentiment index plunged to 67.4 in
May from 77.2 in April. Economists had expected the index to edge down to 76.0.

With the much steeper than expected drop, the consumer sentiment index tumbled
to its lowest level since hitting 61.3 last November.

The report also showed a notable increase in year-ahead inflation expectations,
which jumped to 3.5 percent in May from 3.2 percent in April, reaching the
highest level since hitting 4.5 percent last November.

Long-run inflation expectations also inched up to 3.1 percent in May from 3.0
percent in April, remaining elevated relative to the 2.2-2.6 percent range seen
in the two years pre-pandemic.

'Today's lower-than-expected consumer sentiment numbers are a warning sign that
the consumer shouldn't be taken for granted,' said Chris Zaccarelli, Chief
Investment Officer for Independent Advisor Alliance. 'In addition, inflation
expectations have been rising as well, which is a double whammy for the Fed.

He added, 'If spending slows down and inflation increases, we'll get the
opposite of the Goldilocks scenario that many were hoping for, and the Fed will
be in an especially difficult position of choosing between accommodating a
slowing economy and fighting increasing inflation expectations.'

Most of the major sectors showed only modest moves on the day, contributing to
the lackluster performance by the broader markets.

Semiconductor stocks showed a strong move to the upside, however, with the
Philadelphia Semiconductor Index climbing by 1.0 percent.

Networking stocks also saw notable strength on the day, while energy stocks came
under pressure amid a decrease by the price of crude oil.

Commodity, Currency Markets

Crude oil futures are climbing $0.62 to $78.88 a barrel after slumping $1 to
$78.26 a barrel last Friday. Meanwhile, after surging $34.70 to $2,375 an ounce
in the previous session, gold futures are tumbling $22.70 to $2,352.30 an ounce.

On the currency front, the U.S. dollar is trading at 155.72 yen versus the
155.78 yen it fetched at the close of New York trading on Friday. Against the
euro, the dollar is trading at $1.0796 compared to last Friday's $1.0771.

Asia

Asian stocks ended lower on Monday after the release of weak lending and mixed
inflation data from China.

U.S. rate worries persisted, and Israel forces advanced deeper into Rafah
despite warnings from the U.S. and Egypt, further weighing on sentiment.

In addition, media reports suggested that the Biden administration plans to
raise tariffs on Chinese electric vehicle imports from 25 percent to 100
percent.

The dollar rose against its major rivals ahead of key U.S. inflation data and
Fed Chair Jerome Powell's speech due this week that might shed additional light
on the outlook for rates.

Gold dropped below $2,350 per ounce in Asian trading, while oil prices were
marginally lower ahead of an OPEC+ meeting on supply policy.

Mainland Chinese markets ended slightly lower as bank loan growth data
disappointed and reports suggested the U.S. government plans to raise tariffs on
a raft of Chinese exports.

Inflation data proved to be a mixed bag, with consumer price inflation rising
for a third straight month in April, while producer price inflation continued to
decline. The benchmark Shanghai Composite Index slipped 0.2 percent to 3,148.02.

Hong Kong's Hang Seng Index climbed 0.8 percent to 19,115.06 as Beijing ramped
up plans to stimulate the economy.

China's finance ministry said today that it would start the long-awaited sales
of long-term treasury bonds to help stimulate key sectors.

Japanese stocks ended marginally lower ahead of corporate earnings reports and
first quarter GDP data due to be released on Thursday.

The Nikkei 225 Index edged down 0.1 percent to 38,179.46 after a rise in
government bond yields as the Bank of Japan cut the amount of Japanese
government bonds it offered to buy in a regular purchase operation. The broader
Topix Index settled 0.2 percent lower at 2,724.08.

Property group Mitsui Fudosan plunged 5.4 percent after its annual net forecast
came in below expectations. Peer Mitsubishi Estate lost 4.1 percent. Medical
equipment maker Olympus jumped 9.7 percent on share buyback news.

Seoul stocks ended little changed, giving up early gains. The Kospi finished
marginally lower at 2,727.21.

Australian markets also ended on a flat note. Banks led losses, while mining
stocks ended on a mixed note.

Mining heavyweight BHP rose 0.8 percent, while Rio Tinto dropped 0.8 percent and
smaller rival Fortescue Metals Group shed 0.6 percent after iron ore prices hit
a more-than-two-week low on Friday.

Across the Tasman, New Zealand's benchmark S&P NZX-50 Index fell 0.9 percent to
11,652.16 after a survey showed activity in the country's services sector
slumped in April.

Europe

European stocks have struggled for direction on Monday after a recent string of
gains. A cautious undertone has prevailed after more Federal Reserve officials
said on Friday that U.S. interest rates are likely to remain at elevated levels
until there is clear sign that the rate of inflation is slowing.

Investors looked ahead to the release of key U.S. inflation data and Fed Chair
Jerome Powell's speech due this week for additional clarity on the Fed's rate
trajectory.

China's consumer inflation rose for a third straight month in April, while the
producer price index declined for a 19th month, data showed earlier today.

Currently, the U.K.'s FTSE 100 Index, the French CAC 40 Index and the German DAX
Index are all down by 0.2 percent.

Diploma shares have jumped 5 percent after the technical products supplier
reported a good set of half-year results and raised its sales and earnings
forecasts.

Victrex has also advanced. The high-performance polymers group forecast
improvement in the second half after underlying profits dropped by a third in
the first half.

Mission Group has also moved sharply higher. The digital marketing agency
rejected a takeover proposal from rival Brave Bison.

Sanofi has also moved to the upside. The French drug major announced an
investment of more than 1 billion euros to create new bioproduction capacity at
its various sites in France.

German IT company Q.beyond has also risen after reporting a narrower first
quarter loss and confirming 2024 outlook.

Meanwhile, Adesso SE has slumped. The IT services provider reported that its
first-quarter consolidated loss was 3.30 million euros, compared to prior year's
profit of 2.02 million euros.

U.S. Economic Reports

Cleveland Federal Reserve President Loretta Mester and Federal Reserve Vice
Chair Philip Jefferson are scheduled to participate in a discussion before the
Central Bank Communications: Theory and Practice Conference hosted by the
Cleveland Fed at 9 am ET.

Stocks In Focus

Shares of GameStop (GME) are soaring in pre-market trading after social media
persona 'Roaring Kitty,' whose posts helped spark a frenzy of activity in the
video game retailer's stock in 2021, posted on X for the first time in three
years.

Website building and hosting company Squarespace (SQSP) is also likely to move
to sharply higher after entering into a definitive agreement to go private in an
all-cash transaction valued at approximately $6.9 billion.

On the other hand, shares of PENN Entertainment (PENN) may come under pressure
after Bank of America downgraded its rating on the sports-betting company's
stock Neutral from Buy.



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