Global shares rose and the dollar eased on Tuesday as investors awaited U.S. inflation data that could impact the Federal Reserve’s rate hike plans. The MSCI All-World index rose 0.3%, driven by gains in European shares and Chinese equities. U.S. stock index futures also indicated a modest rise at the opening bell. The market is closely watching the U.S. inflation data, which is expected to show a rise of 3.1% in June, the lowest reading since March 2021. However, the core rate is still more than double the Fed’s 2% target. The dollar index was down 0.2% on the day, while the yield on the benchmark 10-year note fell below 4%. The Japanese yen rose to one-month highs against the dollar. Meanwhile, the prospect of China supporting economic growth boosted the prices of commodities like oil and copper. Chinese regulators extended some policies to shore up liquidity in the real estate sector. Brent crude was up 0.4% at $78 a barrel, while copper gained 0.5% on the London Metal Exchange. Second-quarter earnings are also expected this week from major Wall Street institutions, with analysts predicting a 6.4% shrinkage year-on-year.
What factors are contributing to the rise in prices of oil and copper, and how is China’s commitment to economic growth influencing these price increases
Global markets surge as inflation data looms: European and Chinese equities drive 0.3% rise in MSCI All-World index, while US futures hint at modest gains at opening bell. All eyes on US inflation data, predicted to show a 3.1% increase in June – though the core rate remains well above the Federal Reserve’s target of 2%. The dollar slips 0.2%, while yields on benchmark 10-year note dip below 4%. Japanese yen hits one-month highs against the dollar. China’s commitment to economic growth bolsters prices of oil and copper. Earnings reports from major Wall Street institutions await, with analysts projecting a 6.4% year-on-year decline. Brent crude up 0.4% at $78 a barrel, and copper gains 0.5% on London Metal Exchange.
Investors worldwide are cautiously optimistic as global shares gain momentum while the dollar retreats on the eve of U.S. inflation data. This impending release holds the potential to impact markets and shape strategies for the near term. Eyes are glued to the figures, hoping for signs of economic recovery amidst ongoing uncertainties.
It’s encouraging to see global shares on the rise, reflecting growing optimism in the market. The weakening of the dollar ahead of the U.S. inflation data suggests investors are anticipating potential changes in monetary policy. It will be interesting to see how these factors unfold and their impact on the global economy.