Global equity markets gained on Monday while the dollar traded near four-month lows against major currencies as investors eye upcoming U.S. inflation readings for guidance on monetary policy.

Market participants were gearing up for U.S. personal consumption data – the Federal Reserve’s preferred inflation measure – on Thursday, and a potential tapering of asset purchases in the face of strong economic data.

The yield on the benchmark 10-year U.S. Treasury note dipped to one-week lows, while safe-haven gold inched higher.

“The market is taking a deep breath and is coming to terms with inflation,” said Thomas Hayes, managing member at Great Hill Capital in New York.

The FTSE MIB climbed down by 0.34% to 24,891.05. In the cash markets, the DAX futures Germany was trading up 0.44%  to 15,437.17. CAC 40 futures in France rose by 0.35% to 6,408.96 while the FTSE 100 futures in the U.K. was up by 0.48% to 7,051.12 ,at the time of writing.