Global Stocks Mixed Ahead of Key U.S. Inflation Data
Key Points:
- Global stock markets showed mixed performance on Wednesday.
- U.S. inflation data could influence Federal Reserve rate decisions.
- Investors weigh economic updates and geopolitical developments.
European Markets Show Modest Gains
Germany’s DAX rose 0.2%, reaching 20,311.39. Paris’s CAC 40 remained flat at 7,424.49. London’s FTSE climbed 0.8%, closing at 8,263.60.
Asian Markets Reflect Mixed Sentiment
Tokyo’s Nikkei 225 dipped 0.1% to 38,444.58. South Korea’s Kospi remained nearly unchanged at 2,496.81. South Korea’s unemployment rate hit 3.7%, its highest since June 2021, amid political uncertainty.
Hong Kong’s Hang Seng added 0.3% to 19,286.07, buoyed by positive media reports on U.S.-China relations. Shanghai Composite declined 0.4%, ending at 3,227.12.
U.S. Futures Show Slight Gains
Futures for the S&P 500 and Dow Jones Industrial Average rose 0.1%. Investors await December’s Consumer Price Index (CPI) report for guidance.
Tech Stocks and Inflation Data Impact U.S. Markets
On Tuesday, the S&P 500 edged up 0.1%, while the Dow gained 0.5%. The Nasdaq slipped 0.2% due to Big Tech stock declines. Nvidia dropped 1.1%, and Eli Lilly fell 6.6% after weaker revenue projections.
Inflation Insights and Federal Reserve Outlook
U.S. wholesale inflation data suggested easing price pressures. Analysts expect CPI to show moderated inflation growth at 2.9% year-over-year for December. This data could shape the Fed’s rate-cut decisions.
The Fed hinted at two rate cuts in 2025, reduced from earlier projections of four. Speculation grows that rate cuts might be postponed.
Energy and Currency Markets
U.S. crude oil rose 29 cents to $76.66 per barrel. Brent crude added 42 cents, closing at $80.34. The U.S. dollar weakened to 157.08 yen, while the euro slipped to $1.0299.
Source: Yahoo
