Nikkei leads world higher in event-packed week ahead
By Nell Mackenzie and Wayne Cole
LONDON/SYDNEY (Reuters) -World shares tipped higher Monday as a mixed European open could not dispel enthusiasm over record heights reached by Japan's Nikkei and as investors braced for a week packed with central bank events and major data that could refine market wagers.
Federal Reserve Chair Jerome Powell testifies before lawmakers on Wednesday and Thursday, though analysts assume he will stay in wait-and-see mode on policy given recent upside surprises on inflation that have helped temper market rate cut bets.
The February payrolls report on Friday could also shift the calculus with forecasts favouring a still-solid rise of 200,000 after January's barnstorming 353,000 jump.
«We are still in an environment of economic improvement. Friday's U.S. employment data will tell us a lot about where we are in terms of wage inflation and consumer resilience,» said Lilian Chovin, head of asset allocation at the British private bank, Coutts.
«It will also inform on whether the current narrative is sustainable.»
In Europe, a UK budget on Wednesday is followed by the European Central Bank's latest policy meeting on Thursday. The ECB is considered certain to keep rates at 4.0%, but also lower its outlook for inflation in a nod to eventual cuts.
Europe's broadest index of stocks and the German DAX steadied while the French and UK markets slipped 0.2% and 0.3%, respectively by 0905 GMT.
Other events of note this week include U.S. President Joe Biden's State of the Union address on Thursday, the Super Tuesday U.S. primaries and China's National People's Congress (NPC) meeting starting on Tuesday which might flag new stimulus measures.
Chinese blue chips were largely flat awaiting some concrete news
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