U.S. stock index futures edged higher on Monday

Good morning.

U.S. stock index futures edged higher on Monday, with investor focus on key inflation data and employment readings that are due later this week for further clues on the Federal Reserve’s interest rate trajectory.

The personal consumption expenditures price index, the Fed’s preferred inflation gauge, is set to be released on Thursday and the non-farm pay rolls data is due on Friday. Markets are also bracing for a potentially volatile September as it faces key economic data reports, a Fed meeting and worries over a possible government shutdown during a month of historically muted equity performance. In Septembers since 1945, the S&P 500 has declined an average of 0.7%, the worst performance of any month, according to CFRA.

Investors will also watch what happens with roughly $82 billion worth of student loans held by the government whose payments will begin in October. This could sap consumer spending ahead of the holiday shopping season.

China’s Shanghai Composite today closed higher following the government’s reduction of stamp duty on stock trades, marking the first such reduction since 2008, and a commitment to slowing down the pace of initial public offerings. In a brief statement on Sunday, the finance ministry said it was reducing the 0.1% duty on stock trades “to invigorate the capital market and boost investor confidence.”

WTI crude futures rose to just under $80 per barrel. Gold stabilized around $1,915 an ounce while the yield on the 10-year US Treasury note held near the 4.25% mark.

Have a great day!