Investors are cautious ahead of key inflation data from the US and Europe this week
While US stock market was closed on Monday for Memorial Day holiday, European and Asian stocks were marginal higher at the start of the week, with investors cautious ahead of key inflation data from the US and Europe this week.
On Tuesday, Asian markets were mostly lower. The Shanghai Composite index dropped 0.46% after government officials affirmed Beijing’s determination to contain financial risks. Hong Kong’s Hang Seng lost less than 0.1%, Tokyo’s Nikkei 225 fell 0.1% and the Kospi in Seoul was nearly unchanged. Australia’s S&P/ASX 200 shed 0.28%. in Japan, April producer prices beat estimates, while Bank of Japan Governor Ueda said there is scope for gradually raising interest rates.
In Europe, equities opened higher on Tuesday, with London struggling to gain ground as investors returned to action following a three-day holiday weekend. The UK benchmark FTSE 100 index shed 0.12% after some gains at the opening bell. The pan-European Stoxx 600 index was up 0.1% in early deals, with most sectors trading in positive territory. Frankfurt’s DAX 30 index added 0.41% while the Paris CAC 40 gave up 0.19%.
Meanwhile, the US dollar stays pressured these days as traders refrain from bullish bets after last week’s rejection from the 105.10 zone. Downside risks persist as long as the greenback stays below the 105.00 handle. The dollar could be cautious in the days to come as traders await the US PCE report that could affect Fed rate cut expectations. In the immediate term, the USD index needs to hold above 104/50 in order to stay afloat.
