Stock Market Today: Global equities have risen ahead of an update on consumer prices in the United States.
World stocks rose on Tuesday ahead of a key inflation report in the United States, which will likely set the tone for the Federal Reserve’s final meeting of the year. The S&P 500 futures increased by 0.1%, while the Dow Jones Industrial Average futures increased by roughly 0.2%.The DAX in Germany rose 0.2% to 16,833.57, while the CAC 40 in Paris rose 0.4% to 7,601.56. In London, the FTSE 100 jumped 0.8% to 7,602.45.
The Office for National Statistics announced on Tuesday that pay growth in the United Kingdom slowed to its worst rate in nearly two years in November, supported by a decline in job openings. The numbers were interpreted as evidence that inflation is slowing as a result of high borrowing rates, and they could help shape the Bank of England’s interest rate decision on Thursday.
Tokyo’s Nikkei 225 rose 0.2% to 32,843.70 in Asian trading. According to data released on Tuesday, wholesale prices in Japan climbed 0.3% year on year in November, the slowest rate of increase in nearly three years. This signaled that inflationary pressures would moderate as the central bank considered whether to ease its ultra-easy monetary policy.
The Hang Seng in Hong Kong surged 1.1% to 16,374.50, while the Shanghai Composite rose 0.4% to 3,003.44. Chinese leaders are allegedly convening an annual economic meeting, which is set to end Tuesday with commitments to promote stable growth. The Kospi in Seoul was up 0.4% at 2,535.27. The S&P/ASX 200 index in Australia rose 0.5% to 7,235.30.
The Sensex in India fell 0.3%, while the SET in Bangkok fell 0.6%. The S&P 500 gained 0.4% on Monday, finishing at its highest level in 20 months. The Dow rose 0.4%, while the Nasdaq rose 0.2%. The modest increases come after the major market indices had a six-week winning streak. The S&P 500 is up 20.4% for the year, and the Nasdaq is up 37.9%.
The government will announce its November consumer inflation statistics on Tuesday. Analysts anticipate that inflation will remain at 3.1%, down from 3.2% in October. The government will disclose its November data on wholesale inflation on Wednesday, which is likely to reveal that the rate of inflation is slowing. Wall Street expects the Fed to retain its benchmark interest rate of 5.25% to 5.50% until early 2024 and to begin decreasing rates by the middle of that year.
“With inflation falling faster than expected, it now appears likely that the Fed will refrain from further rate hikes,” said Brian Rose, senior U.S. economist at UBS, in a note to investors. “At the same time, inflation is still too high and the labor market is still too tight for the Fed to consider cutting rates soon.”
Several large corporations will report earnings this week, making them among the last to do so. Adobe will report on Wednesday, and Olive Garden parent firm Darden Restaurants will report on Friday. Bond market Treasury yields were usually lower. The 10-year yield fell from 4.23% late Monday to 4.19%. In October, it climbed above 5% for the first time since 2007.
In energy trade, New York Mercantile Exchange benchmark crude oil rose 40 cents to $71.72 per barrel in electronic trading. Brent crude, the worldwide benchmark, rose 38 cents to $76.41 a barrel. The US dollar declined from 146.16 yen to 145.36 yen. The euro jumped from $1.0763 to $1.0793.
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