Investors around the world are eagerly awaiting the latest update on U.S. inflation as shares opened higher in Europe on Wednesday. The news comes after a mixed session in Asia, with markets reacting to various economic indicators and reports.
In Europe, Germany’s DAX advanced 0.8%, the CAC 40 in Paris gained 0.6%, and the FTSE 100 in London climbed 0.6%. Meanwhile, futures for the S&P 500 and the Dow Jones Industrial Average were both up 0.1%.
In Asian trading, Hong Kong’s Hang Seng gained 1.9%, while the Shanghai Composite index lost 0.7% after Fitch Ratings lowered its outlook for China’s public finances. The report cited increased risks due to China’s shift away from reliance on its troubled property sector and rising public debt.
The U.S. will release its highly anticipated update on consumer inflation later on Wednesday, with other reports on inflation and big U.S. companies reporting their first-quarter profits. The dominant question on Wall Street is whether inflation will cool enough to convince the Federal Reserve to deliver the interest rate cuts that traders are hoping for.
Some doubts have arisen following hotter-than-expected reports on the economy, leading traders to expect fewer rate cuts than previously anticipated. The Fed’s main interest rate is currently at its highest level in over two decades, and the risk of rates being left too high for too long causing a recession is a concern.
Oil prices have also been a point of interest, with U.S. benchmark crude oil gaining 21 cents to $85.44 per barrel and Brent crude rising to $89.64 per barrel. On Wall Street, Apple and Norfolk Southern were among the companies making headlines, with Apple nudging the S&P 500 higher and Norfolk Southern agreeing to a $600 million class-action lawsuit settlement related to a train derailment.
Overall, investors are closely watching economic indicators and reports to gauge the direction of the market and the potential impact on their investments. Stay tuned for more updates on this developing story.
