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Today’s Stock Market Update: International Equities Show Varied Performance as Investors Await US Inflation Report

European stocks saw declines at the start of trading on Tuesday, contrasting with mostly positive outcomes in Asian markets, as investors awaited the release of the U.S. inflation report to gauge its impact on Federal Reserve interest rate decisions.

Germany’s DAX retreated by 0.7% to 18,185.55, while France’s CAC 40 slipped 0.6% to 8,071.74. The FTSE 100 in London managed a modest gain of 0.2%, reaching 7,958.24.

Futures indicated a flat opening for the S&P 500 and a slight decline for the Dow Jones Industrial Average.

In Asia, Japan’s Nikkei 225 surged by 1.1% to 39,773.13, with the U.S. dollar nearing a 34-year high against the Japanese yen. Hong Kong’s Hang Seng rose for the second consecutive day, climbing 0.6% to 16,828.07, while the Shanghai Composite inched up by less than 0.1% to 3,048.54. South Korea’s Kospi declined by 0.5% to 2,705.16, and Australia’s S&P/ASX 200 advanced by 0.5% to 7,824.20.

Investor focus remained on the upcoming U.S. consumer price index update scheduled for Wednesday. Stephen Innes, managing partner at SPI Asset Management, emphasized the significance of this release in light of recent wage-growth data indicating contained inflationary pressures.

Monday saw U.S. stock indexes hovering near record levels, with the S&P 500 and Dow Jones Industrial Average experiencing minor fluctuations. This followed several days of intense trading activity.

Market sentiment has been influenced by reports showing persistent inflationary pressures, prompting investors to reassess expectations regarding potential interest rate adjustments by the Federal Reserve. Fed Chair Jerome Powell expressed anticipation of rate cuts this year, but emphasized the need for further evidence of inflation aligning with the central bank’s target.

The week ahead also features the beginning of earnings reporting season, with Delta Air Lines and JPMorgan Chase among the notable names set to announce results. Analysts anticipate a third consecutive quarter of growth across S&P 500 companies.

Oil prices saw gains in electronic trading, with U.S. crude climbing 37 cents to $86.79 a barrel and Brent crude rising by 35 cents to $90.73 a barrel. The euro edged up slightly against the dollar, trading at $1.0860 compared to $1.0856 previously.

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