► Global stock markets remain cautiously optimistic as they await critical US inflation data (13:30 UTC+0), which will potentially guide the Federal Reserve’s future policy moves. The very upbeat mood in Japanese markets contrasts with the more reserved global sentiment, as investors worldwide brace for pivotal economic indicators and earnings reports.
► In Europe, the Stoxx 600 index climbed 0.5%, buoyed by positive corporate news including Tesco’s raised profit guidance and despite Marks & Spencer Group share drop post-sales report.
► US stock futures indicated a positive opening, with Dow, S&P 500, and Nasdaq all edging higher. This optimism comes as the market gears up for the latest inflation data (US CPI) and the start of the fourth-quarter earnings season. Investors are particularly focused on the forthcoming US inflation report, which is pivotal in shaping Federal Reserve policy expectations. The anticipated US inflation data is set to be a market mover, with predictions of year-over-year core inflation falling to 3.8% from 4%. Our chief analyst Robert Lindner sees more room for disappointment than inflation data further accelerating already optimistic rate cut hopes. The upcoming US consumer price data will also cause volatility in the Treasury market. Currently, we see treasuries gaining while the USD slightly weakened against Group-of-10 peers, reflecting a global shift in investor sentiment.
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