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Global stocks mixed as investors await US inflation figures

Global stocks

DAX declined 0.7% to 18,185.55, the CAC 40 shed 0.6% to 8,071.74, the FTSE 100 rose 0.2%, to 7,958.24, S&P 500 futures were flat, DJIA future lost 0.1%, Nikkei 225 added 1.1% and closed at 39,773.13, Hang Seng advanced gained 0.6% to 16,828.07, the Shanghai Composite index rose less than 0.1% to 3,048.54, the Kospi shed 0.5% to 2,705.16, and Australia’s S&P/ASX 200 added 0.5% to 7,824.20

European equities slipped in early trading Tuesday while Asian stocks ended mostly higher, as investors mainly focused on a U.S. inflation report and what it means for interest rate cuts by the Fed.

Oil prices rose.

Germany’s DAX declined 0.7% to 18,185.55. In Paris, the CAC 40 shed 0.6% to 8,071.74. In London, the FTSE 100 rose 0.2%, to 7,958.24.

The future for the S&P 500 was flat and that for the DJIA lost 0.1%.

In Asian trading, Japan’s benchmark Nikkei 225 added 1.1% and closed at 39,773.13. The Japanese yen languished as the U.S. dollar rose to 151.91 yen, coming near a 34-year high of 151.97 yen, which it touched in late last month.

The Hang Seng in Hong Kong advanced for a second day, gaining 0.6% to 16,828.07, and the Shanghai Composite index rose less than 0.1% to 3,048.54.

In South Korea, the Kospi shed 0.5% to 2,705.16, and Australia’s S&P/ASX 200 added 0.5% to 7,824.20.

An update on the U.S. CPI was due later Wednesday.

The upbeat sentiment stemming from Friday’s jobs report, where indexes soared following wage-growth data indicating contained inflationary pressures, has set the stage for a white knuckle event as the forthcoming consumer-price index release looms larger than life, according to Stephen Innes, managing partner at SPI Asset Management.

The S&P 500 dropped less than 0.1% to 5,202.39. The DJIA tiptoed less than 0.1% lower to 38,892.80, while the Nasdaq composite rose 5 points to 16,253.96.

A series of reports showing inflation and the economy have remained hotter than expected has led investors to delay forecasts for when relief on rates could arrive.

Fed Chair Jerome Powell said recently that he still expects reduction to interest rates this year, but the central bank needs additional confirmation inflation is heading toward its target of 2%. The risk of holding rates too high for too long is that it could cause a recession.

This week brings the start of another earnings reporting season. Delta Air Lines, JPMorgan Chase and other banks will headline the earliest days of the reporting period. Analysts are expecting companies across the S&P 500 to deliver a third consecutive quarter of growth.

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