Stock market today: Global shares rise ahead of US inflation update on hopes for easing rate hikes
Global stock markets are higher ahead of a U.S. inflation update that traders hope will show the need for more interest rate hikes is easing
BEIJING — Global stock markets rose Tuesday ahead of a U.S. inflation update traders hope will show the need for more interest rate hikes is easing.
Paris, Shanghai, Frankfurt and Tokyo advanced. Wall Street futures were little-changed. Oil prices rose.
Wall Street's benchmark S&P 500 index gained 0.2% on Monday following its second weekly decline in two months.
Traders looked ahead to Wednesday's update on U.S. consumer prices for signs of whether the Federal Reserve might decide inflation has cooled enough following a year of interest rate hikes. They hope the U.S. central bank will decide no more are needed, though Fed officials suggest as many as two more increases are possible this year.
Forecasters expect inflation in June to fall to 3.1% from the previous month's 4%. That would be higher than the Fed's 2% target but down sharply from last year's peak above 9%.
“They will have a hard time justifying further rate increases if headline inflation — which is their mandate — is moving convincingly towards target,” said Rubeela Farooqi of High Frequency Economics in a report.
In early trading, the CAC 40 in Paris rose 0.5% to 7,178.65. The DAX in Frankfurt added less than 0.1% to 15,683.25 while the FTSE 100 in London declined 0.3% to 7,264.22.
On Wall Street, the S&P 500 future was unchanged. That for that Dow Jones Industrial Average lost less than 0.1%. On Monday, the Dow Jones Industrial Average climbed 0.6%. The Nasdaq composite added 0.2%.
Tuesday in Asia, the Shanghai Composite Index gained 0.6% to 3,221.36 and the Nikkei 225 in Tokyo added less than 0.1% to 32,203.57. The
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