Global stocks traded mixed on Wednesday as investors weighed a recent easing in US inflation against hawkish signals from major central banks.
European shares edged higher, with Germany’s DAX and France’s CAC 40 up around 0.1%. Earlier, Asian markets saw modest gains as Japan’s Nikkei rose over 1%.
However, Wall Street futures pointed to small losses at the open, tracking a global equities sell-off in August driven by Fed meeting minutes and comments from Jerome Powell.
Recent data showing a drop in US job openings and moderating eurozone inflation have fuelled hopes of a less aggressive pace of rate hikes. This comes as markets now see an 87% chance of the Fed pausing hikes in September.
Treasury yields dipped after Tuesday’s data-fueled rally, though German yields rose on regional inflation figures.
Investors await major US consumer spending and employment reports this week for fresh clues on the inflation outlook. Oil prices edged up while the dollar strengthened marginally.
Overall, stocks remained caught between signs of easing price pressures and lingering Fed rhetoric signaling further tightening.
