Stock futures are flat as traders await inflation data later this week

European indices started the trading week in full swing, as traders look forward to more corporate earnings, economic data and the Bank of England’s interest rate decision this week.

In individual stock news, Italy’s Banca Monte Dei Paschi rose 2.7% in early deals after a report said Italy’s treasury was open to reducing its 64% stake in the lender.

Read more here.

A Reuters poll of economists showed that China’s trade surplus is expected to have narrowed slightly from $88.2 billion in March to $74.3 billion in April.

Exports are expected to grow 8% y/y after growing 14.8% in March, while imports are expected to remain unchanged after falling 1.4% y/y the previous month.

Goldman Sachs economists said in a note on Monday that the weaker trade data in April likely reflects the “lingering seasonality” after this year’s Lunar New Year.

“We expect the dissipation of this seasonal bias to slow export growth in April. We expect import growth to slow month-on-month,” the economists wrote, adding that seasonal patterns related to the holidays are not so conspicuously observed in imports.

The economy is also scheduled to release inflation data later in the week.

– Jihe Lee

Jun Seok, a strategist at Morgan Stanley, has made a bullish call in the South Korean market, setting a target of 2,750 on the Kospi Index in 2023, just over 9% from its current level of 2,520.29.

Speaking to CNBC’s “Squawk on the Road” program in South Korea, Jun explained that there are three elements investors should look at: monetary policy, corporate earnings, and the country’s capital reform initiative.

As for monetary policy, the main question to ask will be when rate cuts will come, he said, given that the Bank of Korea was one of the first in Asia to pause rate hikes.

As for corporate profits, he says that in a multipolar world, Korean companies will have “more opportunities and risks,” noting that the company is optimistic in the material and technical sector.

“We see Korean technology as one of the big beneficiaries,” he told CNBC.

South Korean companies have “proactively adapted” to potential future problems in the global supply chain, John added, adding that they also have “a lot of intellectual property that really helps us.”

– Lim Hwi Ji

A private survey showed that Japan’s service sector expanded at a record pace in April.

Bank au Jibun The Japanese Services PMI was at 55.4, higher than March’s figure of 54.9 and marking the fifth consecutive month in expansion territory.

A reading above 50 indicates expansion in the sector, while a number below 50 indicates contraction.

Japan’s composite PMI for April – which combines manufacturing and service sector figures – came in unchanged at 52.9.

This marks the fastest pace of growth since June 2022, and the fourth month in a row that the Composite PMI has remained above the 50 mark.

– Lim Hwi Ji

Bill Negrin of Oakmark Funds revealed to CNBC Pro on Friday the best-ever deal of his decades-long career.

Read more about why the value investor rates this media offering as their best deal here

– Samantha Sobin

Factset data shows the S&P 500 earnings are on track for year-over-year declines, with about 85% of the benchmark’s results so far.

Based on a mixed measure of growth, EPS is on track to decline 2.4% yoy, with the materials segment seeing the largest decline at 25.7%.

Of the companies that published their results, about 79% beat EPS expectations while just over 74% beat sales estimates, according to Factset.

– Samantha Sobin