Markets worldwide rise ahead of US inflation data, US-China summit
Global stocks experienced a mostly positive trend on Tuesday, as investors eagerly awaited major events such as the US-China summit and economic data releases from the US, Japan, and China. The upcoming meeting between US President Joe Biden and Chinese Premier Xi Jinping will mark the first in-person interaction between the heads of the world's two largest economies in a year. Moreover, investors are keen to learn about the latest US consumer inflation figures.
Asian stocks gain ground amid positive geopolitical sentiments
Asian shares experienced modest gains Tuesday morning, as investors hoped that US inflation data would confirm a peak in interest rates. China's SSE Composite Index closed 0.31% higher, Japan's Nikkei 225 edged up by 0.34%, while South Korea's KOSPI was up by a whopping 1.23%. India's stock market remained closed on Tuesday. China is expected to release monthly economic indicators on Wednesday, while Japan will reveal its latest growth figures.
European stocks mostly up as traders await US inflation data
European shares were mixed as investors looked forward to US inflation data that could signal a potential decrease in worldwide interest rates. At the time of writing, the pan-European STOXX 600 traded up by 0.09%, Germany's DAX traded up by 0.35%, Spain's IBEX35 was up 0.42%, and Italy's stock market index traded 0.76% higher. However, the United Kingdom's FTSE 100 traded 0.4% below the previous closing, as of now.
US economy remains strong despite high inflation
Despite the US Federal Reserve raising its primary interest rate to its highest point since 2001 to combat high inflation, the US economy has remained resilient. Investors are monitoring whether prices continue to cool down, with expectations that inflation will keep dropping from its summer 2022 peak of over 9%. Federal Reserve Chair Jerome Powell recently hinted that an increase in long-term Treasury yields could serve as an alternative to additional rate hikes.
