Traders prepared for a report that might reveal US inflation is slowing, easing pressure on the Federal Reserve. Hence, Wall Street futures were stable and European stocks rose. One of the Fed’s hardest-hit sectors, the technology sector, led Wall Street higher on Wednesday, with the Nasdaq 100 down less than 0.1%. The S&P 500’s was unaffected. Following news that an expansion to the electric car manufacturer’s Shanghai plant has been delayed, Tesla Inc. shares declined in premarket trading.
The benchmark European equity index increased by 0.7%, helped by real estate stocks, which saw gains for a second day as investors hoped for a softer rate outlook.
Following Wednesday’s session gains, Treasuries held steady. At the same time, a measure of dollar strength declined as investors ignored the constant stream of hawkish remarks from Federal Reserve officials. A report that the Bank of Japan will investigate the effects of its ultra-loose monetary policy caused the yen to increase in value.
Every detail of the CPI report due on Thursday will be closely examined, focusing on core inflation, which is preferred over the headline measure because it excludes food and energy. The Fed would have exceeded its objective by 5.7%, which helps to explain why it intends to maintain higher rates for a longer period. However, the price growth year over year would also demonstrate moderation.
In Asia, a share index rose for the ninth time in ten days as it approached its highest point in roughly five months.
On other markets, oil increased for a sixth day amid expectations that US inflation is slowing down and as China’s crude purchases increase ahead of the Lunar New Year holidays. The data, which gold climbed ahead of, could determine whether its two-month uptrend will continue.
Since 2020, Bitcoin’s nine-day winning streak has been the longest for the biggest cryptocurrency in the world.
As a result of the company cutting its revenue forecast, delaying the release of “Skull & Bones,” its newest game, and canceling three unannounced games, shares of French video game publisher Ubisoft fell more than 21% in early trade.
Logitech, a Swiss manufacturer of computer accessories, fell more than 14% after reporting disappointing quarterly earnings and lowering its sales forecast.
After increasing its full-year earnings forecast, British gas owner Centrica rose more than 5% to the top of the European blue-chip index.
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