Investing.com - Here are the top five things you need to know in financial markets on Tuesday, May 31:
1. Global stocks mostly higher, dollar holds steady
U.S. stock futures pointed to a slightly higher open on Tuesday, as investors returning from the long Memorial Day weekend awaited data that could back some Federal Reserve officials' relatively optimistic views on the U.S. economy.
Elsewhere, European stock markets were marginally lower, but held near the prior day’s one-month peak as investors digested key euro zone inflation data.
Earlier, shares in Asia closed mostly higher, led by strong gains in China, where the CSI 300 surged 4% and the Shanghai Composite advanced 3.5% as investors bet that MSCI will add mainland shares to its index for the first time next month.
Meanwhile, the dollar index was little changed at 95.72, remaining within striking distance of a more than two-month high of 95.95 struck in the previous session.
2. U.S. data dump ahead
The Commerce Department will release its core personal consumption expenditure (PCE) index for April, along with personal income and spending for the same month at 12:30GMT or 8:30AM ET.
Afterwards, data on business activity in the Chicago region is due at 13:45GMT or 9:45AM ET, followed by the Conference Board’s report on May consumer confidence at 14:00GMT or 10:00AM ET.
Solid readings could further heighten expectations for a move as soon as the Federal Reserve's next policy meeting on June 14-15.
3. Euro zone deflation eases in May
The euro zone remained in deflation for a second straight month in May, although prices fell by less than in April due to a slowdown in the decline of energy prices, according to a first estimate from the EU's statistics agency.
In a report, Eurostat said consumer price inflation fell by a seasonally adjusted 0.1% this month, in line with forecasts, and following a final reading of a 0.2% drop in April.
The data are seen as unlikely to push the European Central Bank to make any changes to monetary policy when it meets on Thursday.
4. Oil prices hold near $50
Oil prices held near the $50-level on Tuesday, as market participants looked ahead to a key meeting of major oil producers later this week. The Organization of the Petroleum Exporting Countries will meet on Thursday in Vienna although no dramatic announcement on a production cut is expected.
Brent was down 23 cents, or 0.46%, at $50.13 a barrel by 9:55GMT, or 5:55AM ET, as market players focused on an improving global supply outlook.
Meanwhile, U.S. crude was up 15 cents, or 0.3%, to $49.48 lifted by the start of the peak demand summer driving season in the U.S.
5. Volkswagen falls on earnings disappointment
Shares of Volkswagen (DE:VOWG_p) lost 3% after the car maker reported a 19.3% decline in profit for the first quarter, missing analyst forecasts. However, the profit was still an improvement from its record full-year loss in 2015, indicating that the auto company has digested most of the financial pain from its emissions-cheating scandal.