Global equity markets traded slightly higher at the start of the week as investors waited for a closely watched U.S. inflation report that could shape the Federal Reserve’s next policy decision. The cautious tone reflected expectations that the consumer price index data will provide a fresh read on whether price pressures are easing enough to justify future rate cuts.

Wall Street futures indicated a modestly higher open, while traders kept positions relatively restrained ahead of the release. Markets have been sensitive to any sign that inflation remains stubborn, since that would reduce the likelihood of near-term monetary easing and keep borrowing costs elevated for longer.

The inflation update is expected to influence sentiment across stocks, bonds and currencies, with investors trying to gauge whether the central bank can move toward a more accommodative stance without reigniting price pressures. For now, the mood remains measured, with participants waiting for hard data rather than making aggressive bets.

Broader market direction this week may hinge on how the CPI figures compare with forecasts. A cooler reading could support risk assets and strengthen hopes for policy relief, while a stronger-than-expected number would likely revive concerns about persistent inflation and delay expectations for changes in interest rates.