Global stock markets edged higher on Monday as investors looked ahead to fresh U.S. inflation data that could shape the Federal Reserve’s next move on interest rates.

Traders are hoping the report will show price pressures easing, a result that would strengthen the case for rate cuts later this year. That expectation has helped support risk assets and kept market sentiment constructive at the start of the week.

The latest move came as investors continued to weigh how far the Fed can ease policy without reigniting inflation. A softer reading would likely reinforce the view that borrowing costs may fall before year-end, while a hotter print could delay those expectations.

Markets remain sensitive to every new data point as global investors try to gauge the pace of economic cooling in the U.S. For now, stocks are holding firm on the prospect that inflation is slowing enough to give central bankers more room to act.