Wall Street futures were little changed as investors prepare for a busy week that will see the release of a key inflation report, Federal Reserve Chair Jerome Powell's testimony and the start of the second-quarter earnings season.
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Investors took Friday's jobs report as adding to the case for a September rate cut from the Federal Reserve, with futures now implying a 77 per cent chance of a move.
S&P 500 futures and Nasdaq futures were both nearly flat on Monday.
Earnings season kicks off on Friday when Citigroup, JP Morgan and Wells Fargo all report.
Fed Chair Jerome Powell will have a chance to offer his outlook when he appears before Congress on Tuesday and Wednesday, while several other Fed officials are speaking this week.
Another main economic event this week promises to be the US consumer price report on Thursday, where headline inflation is expected to slow to 3.1 per cent, from 3.3 per cent, with the core measure seen steady at 3.4 per cent.
It could be a crucial week for financial markets, said Bruno Schneller, managing director at Erlen Capital Management.
"We are on the cusp of several key economic reports that could significantly influence Federal Reserve policy. The June CPI report is particularly in focus, anticipated to continue the trend of moderating inflation with a headline increase of just 0.1 per cent MoM," said Schneller.
German inflation figures are also out on Thursday, while China will release data on both consumer prices and trade this week.
In London trade, 10-year US Treasury yields were up around 4 bps at 4.31 per cent on Monday, having been as high as 4.49 per cent early last week.
Europe's region-wide STOXX 600 and the CAC 40 in Paris were up about 0.4 per cent and 0.3 per cent respectively, after early falls.
In France, a leftist alliance unexpectedly took top spot ahead of the far right in Sunday's election, a major upset that was set to prevent Marine Le Pen's National Rally from running the government.
The weaker-than-expected showing for the far right was something of a relief for investors, though they also have concerns the left's plans could unwind many of President Emmanuel Macron's pro-market reforms.
"Depending on gridlock configurations, French equity valuations could still de-rate by up to five per cent," said a note from Citi.
The single currency steadied at $1.0830, having been as high as $1.0843 on Friday when a soft US jobs report undermined the dollar.
The euro steadied against the yen at 174.29. The dollar stood firm at 160.94 yen, off last week's top of 161.86.
The closely-watched 10-year yield spread between French and German government bonds dropped one basis point (bp) to around 64 bps, its narrowest since June 13, but widened in later trading.
Mainland China and Hong Kong stocks ended lower in early London trading, with a key index logging its fifth straight losing session.
Investors were disappointed by a lack of policy stimulus measures amid a weak economic recovery, rising geopolitical tensions and foreign outflows.
China's bond yields rose as the central bank launched new money market operations to increase its market liquidity.
In commodity markets, gold fell from near one-month highs in earlier trading to stand down 0.7 per cent at $2,374 an ounce.
Oil prices turned lower as the market waited to see what impact Hurricane Beryl might have on supplies from the Gulf of Mexico. Brent fell 66 cents to $85.88 a barrel, while US crude dropped 85 cents to $82.31 per barrel.
Australian Associated Press
