Global stock markets remained largely flat on Tuesday, hovering just below record highs, with investors awaiting crucial U.S. inflation data. Japanese bonds faced pressure as the central bank scaled back its bond buying program slightly.
MSCI's global share index showed little movement, staying about 0.35% below its peak in mid-March. European and U.S. futures were stable, with many regional benchmarks holding near record levels.
While a positive earnings season buoyed stock markets recently, investors exercised caution ahead of key U.S. inflation figures. The focus was on the producer price index for Tuesday, but attention shifted to Wednesday's consumer inflation data.
Jan von Gerich, Nordea's chief strategist, noted that while Tuesday served as a warm-up, Wednesday's U.S. CPI figures were eagerly anticipated. Expectations hinted at a slowdown in core CPI from March's 3.8% to 3.6% for April, though concerns lingered about potential surprises influencing the Federal Reserve's rate decisions.
The 10-year U.S. Treasury yield hovered at 4.473%, slightly down from mid-April's five-month peak but notably higher than the year's starting point. A survey by the New York Fed revealed higher inflation expectations among Americans compared to the previous month.
In the UK, government bonds outperformed European counterparts following wage growth data exceeding forecasts. However, other indicators suggested a cooling labor market.
In corporate news, Delivery Hero saw a 20% surge after Uber's announcement of a $1.25 billion deal to acquire its foodpanda business in Taiwan and purchase new shares. Anglo American's strategic update included plans to explore options for certain businesses amid a takeover bid from BHP.
Upcoming events included Alibaba's earnings report and a speech by Federal Reserve Chair Jerome Powell.
Meanwhile, Hong Kong's Hang Seng index rose significantly, fueled by steady inflows from mainland China and positive sentiments regarding China's spending plans. Japanese government bond yields rose after the central bank's unexpected reduction in bond purchases, maintaining pressure on the yen.
In commodities, Brent crude futures dipped slightly to $83.08 a barrel, while spot gold saw marginal gains at $2,339 an ounce.
Paraphrasing text from "Reuters" all rights reserved by the original author.
