(Bloomberg) -- European and US stock futures markets pushed higher early Monday, following Wall Street’s worst week since December that saw traders come to terms with central bank policy that may remain restrictive for longer than thought on both sides of the Atlantic.

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The Stoxx 600 Index opened 0.8% higher, with energy shares pacing gains and all industry groups in the green. Futures on the tech-heavy Nasdaq 100 rose 0.5%, while contracts on the S&P 500 gained about 0.4%.

Stock markets that had mostly shrugged off forecasts for higher interest rates are finally giving way to a swift repricing of yields. Traders are now pricing US rates to peak at 5.4% this year, compared with about 5% just a month ago, as an acceleration in the Federal Reserve’s preferred inflation gauge dashes hopes for an imminent pause in policy tightening.

“We do not expect any cut before Q1 2024,” said Paolo Zanghieri, senior economist at Generali Investments, after the firm raised its forecast for the peak Fed funds rate to 5.75% and to 3.75% for the European Central Bank. “Most central banks around the world remain prone to tightening.”

Elevated yields continued to support the dollar, with a gauge of the greenback slightly higher after rising 0.7% Friday.

Data due later in the day will provided extra context for the global economic outlook. Eurozone economic and consumer confidence is due, along with durable goods data from the the US.

Elsewhere in markets, oil fell as concerns that the Fed will keep on raising rates eclipsed the latest disruption to supplies in Europe and optimism over a demand recovery in China. Gold was steady.

Iron ore sank following an order by Chinese authorities to cut production in its major steelmaking hub in a bid to curb pollution.

Key events this week:

• Eurozone economic confidence, consumer confidence, Monday

• US durable goods, Monday

• US wholesale inventories, Conf. Board consumer confidence, Tuesday

• China manufacturing PMI, non-manufacturing PMI, Caixin manufacturing PMI, Wednesday

• Eurozone S&P Global Eurozone Manufacturing PMI, Wednesday

• US construction spending, ISM Manufacturing, light vehicle sales, Wednesday

• Eurozone CPI, unemployment, Thursday

• US initial jobless claims, Thursday

• Eurozone S&P Global Eurozone Services PMI, PPI, Friday

--With assistance from Akshay Chinchalkar and Richard Henderson.

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