Expectations are for CPI to rise 0.4% in August
Wall Street stocks finished mixed overnight as investors shifted focus to the upcoming US inflation report due later today. Expectations are for CPI to rise 0.4% in August, down from 0.5% in July. House Democrats unveiled plans for sweeping tax reform on Monday. The Dow Jones rose 0.8% while the Nasdaq shed less than 0.1%. The S&P 500 gained 0.23%, snapping a five-day losing streak which brought the biggest weekly drop in three months.
Today in Asia, equities were mixed as well, with investors keeping an eye on China after authorities tightened their grip on the tech sector while the main event this week is the release of US consumer price data. The Nikkei 225 in Tokyo gained 0.7% while the Hang Seng in Hong Kong sank 1.21%. The Shanghai Composite Index shed 1.42% while the Kospi in Seoul rose 0.67%. Sydney’s S&P/ASX 200 inched 0.16% higher.
European stock markets opened slightly lower on Tuesday, with investors showing caution ahead of the release of key U.S. inflation figures. On the data front, the U.K. claimant count fell by 58,600 in August, a substantial improvement from the 7,800 drop the previous month, while the unemployment rate remained at 4.6%.
In currencies, the dollar turned marginally lower versus major counterparts ahead of key data. The USD index dropped to 2-day lows in the 92.50 region following yesterday’s unsuccessful attempt to retake the 93.00 barrier while US 10-year yields follow a consolidative tone around 1.32%. Against this backdrop, EURUSD climbed to the 1.1830 area before retreating marginally. Still, the pair may get back under the 1.1800 figure if US inflation data exceeds expectations.
