Global shares edge higher ahead of U.S. inflation data, yen firms
Global shares edged higher on Tuesday, tracking a rebound on Wall Street ahead of a key U.S. inflation report and speeches by Federal Reserve members, while the yen recouped losses after Japan nominated a new central bank governor.
European shares cheered an upbeat handover from Asia, with the pan-European STOXX 600 (.STOXX) up 0.5%, hovering near its highest in a year, while a continued uptrend in London’s FTSE 100 (.FTSE) saw it scale new peaks.
Wall Street futures , , were muted with the focus on U.S. consumer price index (CPI) data for January, which is expected to show how effective Federal Reserve policy tightening has been in taming inflation. Overnight, the S&P 500 (.SPX) closed up 1.1%.
Analysts expect headline consumer price inflation to have risen by 6.2% in the 12 months to January, versus a rise of 6.5% in December.
“The good news is that the market has been shaken out of its … disinflation view,” said Jim Reid, head of global fundamental credit strategy at Deutsche Bank, referring to markets pricing in a more hawkish Fed following stellar U.S. job growth numbers last week.
Two-year Treasury note yields , which hit three-month highs on Monday as investors priced in the prospect of U.S. rates staying higher for longer, eased 2 basis points to 4.5095%.
Investors will watch for remarks from Fed members following the inflation data. Analysts and strategists have said Tuesday’s report could look more inflationary after annual changes to the methodology to give more weight to real estate.
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