Asia stocks are steady ahead of inflation tests and the OPEC+ meeting. Ahead of potentially market-moving inflation data from the U.S. and Europe later this week and an oil producers’ conference that might halt or prolong the current price decline, Asian markets started the week hesitantly.

Due to the substantial profits that investors are sitting on, the approaching month may also prompt some caution. Japan’s Nikkei 225 (.N225) gained 0.3% after rising 9% in November. The broadest MSCI Asia-Pacific shares outside of Japan index (.MIAPJ0000PUS) were unchanged for the month but 6.7% higher overall.

Nasdaq futures dropped by 0.2%, while S&P 500 futures slipped by 0.1%. The S&P 500 has surged for four weeks in a row and is up 8.7% for the month, marking its best performance since mid-2022.

Thursday’s release of the Federal Reserve’s preferred inflation gauge is anticipated to show a decline to levels not seen since mid-2021, supporting market bets that rates will drop shortly. At a fireside chat on Friday, Fed Chair Jerome Powell will have an opportunity to counter the doves, and this week, at least seven additional Fed speakers are scheduled.

Bruce Kasman, head of global economics at JPMorgan, said, “A view we hold strongly is that central banks are unlikely to deliver easing in the first half of 2024 absent a threat to the expansion or financial stability.”

“Indeed, this message of patience is likely to be notable in upcoming D.M. policy communications in response to recent financial market developments.”

OPEC+ OIL HANGS

Christine Lagarde, the president of the European Central Bank, has also conveyed that she is not in a rush to improve the situation, and she will have another chance to emphasize this point on Monday in the E.U. parliament.

Thursday’s data on E.U. consumer prices for November is anticipated to demonstrate a cooling of both headline and core rates, supporting decreases in market pricing.

The markets factored in around 83 basis points for the ECB and nearly 90 basis points for U.S. easing next year. Bond prices have experienced a significant increase due to the possibility of lower borrowing costs; 10-year Treasury rates have dropped by 37 basis points to 4.49% this month.

As a result, the dollar has suffered this month, losing 3% against a group of essential peers. The dollar was stable at 149.53 yen on Monday, while the euro was up at $1.0940, not far from its recent four-month high of $1.0965.

The rate decline has helped non-yielding gold, trading at $2,000 an ounce, close to its top of $2,009.29 in October. Ahead of OPEC+’s meeting on November 30, which was initially scheduled for Sunday but was postponed due to producers’ inability to agree on a stance, the oil market is expected to experience a stressful few days.

According to reports, Saudi Arabia may prolong its additional 1 million barrels per day voluntary production reduction, which is scheduled to expire at the end of December, while African oil producers reportedly demand more extraordinary ceilings for 2024.

Due to the uncertainty, prices were stable on Monday. U.S. crU.S. climbed 14 cents to $75.68 per barrel, while Brent increased by 15 cents to $80.73.