Global Stocks Rise Ahead of Key Inflation Data
Global stocks rose on Tuesday, taking their lead from an upbeat session on Wall Street, as investors awaited key inflation data that could shape the outlook for central bank monetary policy.
The Stoxx 600 European benchmark index rose 0.3% in early trade, while the S&P 500 and Nasdaq Composite indexes in the United States closed at their highest levels since April 2022 on Monday.
Investors are awaiting the release of U.S. consumer price inflation data on Tuesday and wholesale price inflation data on Wednesday, which could offer clues about how much further central banks need to raise interest rates to cool inflation.
Inflation in the United States has been running at its highest level in decades, and central banks around the world have been raising interest rates in an effort to bring it under control.
However, there are concerns that the pace of rate hikes could lead to a recession, and investors will be looking for any signs in the inflation data that central banks may be able to ease off on rate hikes in the near future.
In other news, the Bank of England is expected to raise interest rates by another quarter point on Thursday, while the European Central Bank is expected to raise rates by 25 basis points on July 21.
The Bank of Japan is expected to keep its policy settings unchanged on Friday.
Oil prices rose on Tuesday, with Brent crude futures up 0.85% to $72.47 a barrel and U.S. crude futures up 0.5% to $67.49.
Gold rose 0.3% to $1,964 an ounce.