Global stocks rise as investors wait for US inflation
Global stocks were mostly higher on Thursday, as investors waited for US inflation data that could influence the Federal Reserve’s decision to decide when to reverse the economic stimulus.
London and Frankfurt opened higher while Tokyo fell. Shanghai, Hong Kong and Seoul also advanced.
Wall Street futures were lower after stocks rose for a third day on Wednesday as anxiety over the omicron variant of the coronavirus eased.
Traders waited for Friday’s US inflation data for November to see if the Fed may feel more pressure to cool prices by canceling stimulus measures that are boosting stock prices.
Fed officials are meeting next week for the last time in 2021. They said earlier they were ready to act if necessary after inflation hit a 30-year high of 6.2% in October .
“Reading inflation on Friday will undoubtedly be a priority for Fed officials,” StoneX Financial’s Matt Weller said in a report. The overall figure is expected to ‘rise even more.’
Also on Thursday, China announced that inflation in prices paid by factories for components and raw materials eased in November from the previous month’s high in 25 years. This is viewed by traders as a possible guide to US inflation due to China’s role as a global manufacturing center.
In early trading, London’s FTSE 100 rose 0.3% to 7,358.66 and the Frankfurt DAX rose 0.1% to 15,702.33. The CAC 40 in Paris gained 0.3% to 7,036.54.
On Wall Street, futures for the benchmark S&P 500 and the Dow Jones Industrial Average were down 0.2%.
On Wednesday, the S&P 500 rose 0.3%. It is up 25.2% over the year. Some 62% of stocks in the index gained.
The Dow Jones added 0.1% and the Nasdaq composite rose 0.6%.
In Asia, the Shanghai Composite Index 1% to 3,673.04 after producer price inflation slowed to 12.9% a year earlier from 13.5% in October in due to falling prices of coal and metals.
âEfforts to reduce energy prices seem to be working,â Invesco’s David Chao said in a report. âIt is possible that producer prices and inflation will continue to moderate.
The Nikkei 225 in Tokyo lost 0.5% to 28,725.47 while the Hang Seng in Hong Kong rose 1.1% to 24,254.86.
Kospi in Seoul gained 0.9% to 3,029.57 while S & P-ASX in Sydney lost 0.3% to 7,384.50.
The Indian Sensex was little changed at 58,646.60. New Zealand and Bangkok fell while Singapore and Jakarta gained.
US stocks have slipped over the previous two weeks amid concerns about inflation and the omicron variant. Shares stabilized after White House chief medical adviser Dr Anthony Fauci on Monday said early signs suggest it may be less dangerous than the previous delta variant.
In energy markets, benchmark US crude fell 11 cents to $ 72.23 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 31 cents on Wednesday to $ 72.36. Brent crude, the basis of international oil prices, fell 20 cents to $ 75.62 a barrel in London. It rose 38 cents to $ 75.82 the previous session.
The dollar fell to 113.45 yen from 113.67 yen on Wednesday. The euro fell to $ 1.1333 from $ 1.1349.