There are some concerns that the Fed could alter its view on the emerging signs of inflation
Wall Street stocks finished mostly higher overnight, with investors shifting focus to the outcome of the Federal Reserve’s policy meeting this week. There are some concerns that the central bank could alter its view on the emerging signs of inflation. The S&P 500 gained 0.18%, the Dow Jones Industrial Average gave up 0.25%, and the Nasdaq rose 0.74%. Later today, fresh economic data out of the United States including retail sales could affect investor sentiment.
Asian stocks were mixed on Tuesday, as tensions between China and the U.S. weighed on market sentiment somehow. The MSCI’s broadest index of Asia-Pacific shares outside Japan was trading flat. Tokyo’s Nikkei 225 rose nearly 1.0%, the Kospi in Seoul gained 0.2%. In Hong Kong, the Hang Seng lost 0.71% while the Shanghai Composite index shed 0.92%.
In Europe, equities opened higher, as investors await the start of the U.S. Federal Reserve’s latest monetary policy meeting. The pan-European Stoxx 600 added 0.4% in early trade while the U.S. stock index futures made modest gains in premarket trade. The central bank is not expected to take any action however, there will be close attention to comments on the Fed’s tapering plans.
Meanwhile, EUR/USD rebounds further from the 1.2090 region ahead of US retail sales data. The euro so far advances for the second session in a row on Tuesday, facing resistance in the 1.2150 area. On the data front, the German final CPI rose 0.5% MoM and 2.5% YoY in May. The report failed to affect the euro’s dynamics, however. If US retail sales exceed expectations, the dollar could gain across the board. In this scenario, the common currency may retreat to the 1.2100 zone later in the day.
