Stocks Mixed, Dollar Inches Lower Before CPI Data
- Tighter controls on China’s chip exports damp HK tech stocks
- Rate decisions from the ECB, BOE are also due this week
Stocks were mixed while the dollar edged down on Tuesday amid cautious trading ahead of US inflation data that may shape the outlook for interest-rate hikes into next year.
Shares were higher in Japan and Australia, Chinese equities fluctuated and US futures slipped. The S&P 500’s 1.4% gain on Monday wasn’t enough to trigger a convincing rally in Asia as investors also weighed the impact Covid infections in China and tighter restrictions on the nation’s semiconductor industry from the US and its allies.
The dollar saw marginal declines against most of its major counterparts. Treasury yields steadied after gains on Monday that sent the 10-year rate to above 3.6%. Yields for Australian and New Zealand government bonds ticked higher.
Investors will be closely watching the consumer price figures, which are expected to remain elevated even as the rate of increase slows. A subdued CPI print would justify the Federal Reserve’s projected half-point move on Wednesday and shed light on whether markets can expect rate cuts in late 2023.
Source : Bloomberg