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World stocks mixed ahead of US inflation report

inflation data

The Dow gained 0.3% to finish at a record, while both the S&P 500 and Nasdaq edged down

The Dow climbed to a new record Monday on a mixed day for global equities as markets awaited US inflation report.

Tuesday’s consumer price index (CPI) will be closely scrutinized by the Fed, which has welcomed a moderation in price hikes that allowed it to shift away from aggressive interest rate hikes.

Analysts have pencilled in a CPI rise of 0.2%, holding steady from the previous month.

Indices will be waiting patiently for tomorrow’s US inflation data, with market forecasts of a sharp decline in the headline (January) CPI figure providing a potential tailwind for equities, stated Joshua Mahony, chief market analyst at Scope Markets.

But Steve Sosnick of Interactive Brokers said Monday’s mixed session reflected “some nervousness” about a surprise uptick in inflation, which would “put rate cut expectations on hold.”

The Dow gained 0.3% to finish at a record, while both the S&P 500 and Nasdaq edged down.

In Europe, eurozone stocks rose while London was flat ahead of UK inflation, GDP, retail sales and employment data to be released later this week.

Sydney, Bangkok, Mumbai and Wellington ended down Monday – while Jakarta and Manila edged up.

Tokyo, Hong Kong, Shanghai, Taipei, Seoul, Singapore and Kuala Lumpur were shut for the regional holiday season.

Oil prices were mixed before key market updates from the Organization of Petroleum Exporting Countries (OPEC) and International Energy Agency (IEA).

This week sees both OPEC and the IEA release their latest monthly reports, with markets keeping a close eye out for any updated supply and demand forecasts, according to Mahony.

The IEA energy watchdog last month forecast world oil supplies to increase further this year, as declining demand growth amid China’s economic weakness offsets concerns of a broader conflict in the Middle East.

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