Global stocks mostly rose Monday, with the Dow Jones Industrial Average poised to rebound from its longest losing streak in four years.
Disappointing economic data in China provided the fuel for gains in stocks across the globe. The weak reports, including a deflation threat from declining factory prices, lifted expectations Beijing would increase spending and continue to prop up the market by buying shares.
Federal Reserve Vice Chairman Stanley Fischer on Monday emphasized that inflation remains low and Fed officials must see inflation returning to more normal levels before the central bank raises interest rates. Mr. Fischer, who spoke on Bloomberg TV, didn’t offer a specific prediction for when rates could rise.
Investors will receive an update on U.S. inflation later this week, with a reading on producer prices in July. The jobs report for July, released Friday, appeared to keep the Federal Reserve on track to lift interest rates as soon as September. Such a move would be the first in nearly a decade.
S&P 500 futures rose 0.4% to 2082, and e-mini Dow futures rose 0.4% to 17386. Changes in stock futures don’t always accurately predict moves in the stock market after the opening bell.
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“It looks like there are deflationary pressures in China, thus the odds of additional stimulus by the PBOC are only increasing,” said John Brady, managing director at futures brokerage R.J. O’Brien. “That’s why risk assets are higher,” he said, adding that Mr. Fischer’s “measured” comments on U.S. monetary policy also boosted stock futures.
European stocks recovered from early declines. The Stoxx Europe 600 added 0.1%, though shares of oil and gas companies were hit by disappointing Chinese data. Germany’s DAX rose 0.4% and France’s CAC-40 advanced 0.5%.
Oil prices rose slightly after three trading days of losses. Crude-oil futures advanced 0.4% to $44.07 a barrel.
In other markets, gold futures added 0.1% to $1095.40 a barrel.
Treasury prices fell, pushing the 10-year yield up to 2.197% from 2.173% on Friday.
Among individual stocks, Precision Castparts Corp. shares rallied 19% premarket after Warren Buffett’s Berkshire Hathaway Inc. on Monday said it agreed to buy the company for about $32 billion in cash.
