Market undecided if it's going to be bulls or bears

US stocks surged last week, with major indexes registering some of their biggest gains this year, as inflation data quelled fears about economic overheating and the implosion of the Iran deal drove up oil prices.

This week, investors' enthusiasm could be curbed by mixed retailers' earnings reports and the longer term implications of higher oil prices. Political instability in Italy could also revive the long-dormant euro crisis.

The Dow Jones Industrial Average rose more than 3 per cent in its biggest weekly gain since March, re-entering positive territory for 2018. The blue-chip index has now risen in seven straight sessions and is about halfway between its February lows and its January highs.