Air marketAfter Frankfurt hit a record high and Tokyo rose to its best level in more than 30 years, stocks were flat in early trading on Monday, while US indices broke out of their recent trading range. In London, the FTSE 100 index fluctuated around 7,770, while the Nikkei index rose another 0.9% to 31,086 and the DAX pared gains to 16,236. U.S. futures looked slightly weaker, with the S&P 500 closing at 4,186 after closing at 4,192 on Friday. Gold was steady at $1,975, the U.S. 10-year Treasury yield was 3.65 percent, while spot WTI traded at $71.40. GBP/USD - found support at the 50-day line when the USD rally was blocked.hikingBets on a June rate hike moved lower after Jay Powell appeared to fight back against rising market expectations. He said the recent banking crisis and credit crunch meant interest rates might not need to rise as much as they would otherwise, adding: "We face uncertainty about the lagged effects of the tightening to date and the extent of the credit tightening from the stress on these banks." Today, we have a slew of Fed speakers, including Bullard, Barkin, Bostick, and Daly, which could produce a more hawkish tone.Ceiling charadesAs the debt ceiling talks continue, McCarthy will meet with Biden at the White House today...... The guessing game continues... The risk of default may be "higher", but this is a) always going to be resolved and b) always going to wire before it is.China - "Micron is a security risk"Micron shares fell 5% in Germany after China banned the company... Could trade war rhetoric escalate? Biden said relations with China would improve "very soon"... Not sure if he's reading the same script as everyone else?Data cycleInflation data will be released later this week. The first is the Tokyo core CPI, which will be closely watched after the national core core reading hit a 40-year high last week. Then there is the US PCE inflation report. The personal consumption expenditures price index, which excludes food and energy and is the Fed's preferred inflation measure, rose 0.3% in March from a month earlier and 4.6% from a year earlier.