Inflation concerns dominate market sentiment.

Daniela Hathorn of Capital.com stated in a report that as investors assess the potential path of future central bank interest rate decisions, their focus is on the upcoming inflation data. US inflation data for May is set to be released on Wednesday. "Against the backdrop of a sharp increase in expectations for a rate hike by the Federal Reserve before the end of the year in the past week, the current inflation data could either strengthen or challenge this repricing," she said. Data from the London Stock Exchange Group shows that investors are already fully pricing in expectations of a 25 basis point rate hike by the Federal Reserve before the end of 2026.