After hotter-than-expected German inflation statistics added to pressure for central bank policymakers to act to tame rising prices, equities and US futures cut their gains and European bonds dropped.

European stocks reduced gains for the fourth day, but still on track for their longest winning streak since March. As China's reopening plans bolstered sentiment, luxury stocks outperformed on Monday.

The NASDAQ 100 contracts and S&P 500 futures also increased, indicating that the stock market's rally may have room to continue after its strongest week since November 2020. As institutional investors rebalanced portfolios at the end of the month, the S&P 500 erased its May losses and ended a series of seven weekly falls.

The dollar fell for a third day against key rivals, as safe-haven assets lost their allure amid a minor uptick in sentiment. Because of the Memorial Day vacation, no cash treasuries are trading.