Global Stocks and Market Movements Ahead of Key Economic Data

World stocks rose modestly on Monday as Japan's holiday reduced volatility, with investors focusing on U.S. and Chinese economic data. The U.S. consumer price index and retail sales data for July are key events. Major indices like S&P 500, Nasdaq, and Dow Jones showed mixed results, while the yen slipped.

World stocks saw slight gains on Monday as a Japanese holiday provided a respite from recent volatility, prompting investors to focus on upcoming U.S. and Chinese economic reports. Notably, U.S. consumer price index data for July is anticipated on Wednesday, potentially revealing a month-on-month inflation rise to 0.2% after a negative 0.1% in June. Retail sales data is slated for release on Thursday.

On Wall Street, the S&P 500 remained flat by 1340 GMT; the Nasdaq Composite Index added 0.33%, and the Dow Jones Industrial Average dropped 0.3%. Meanwhile, MSCI's global gauge inched up by 0.1%. Last week, market fluctuations were marked by a dip in Japanese stocks tied to weak U.S. job numbers and the unwinding of a popular yen trading strategy.

However, stronger-than-expected U.S. data alleviated fears of a global slowdown, helping stocks recover losses by Friday. Robert Both, senior macro strategist at TD Securities, stated, "We have been winding risk down during the recent market move globally. Our preferred positioning is dovish with moderate risk allocated at the moment." In Europe, the STOXX 600 index rose 0.15%, the DAX was stable, and the FTSE 100 increased by 0.59%. Investors believe Wednesday's U.S. inflation report will significantly influence market trends this week.

(With inputs from agencies.)