The Tokyo Stock Exchange ended trading higher for the fourth consecutive day, after rallying on Wall Street and awaiting US inflation data. The benchmark Nikkei average rose 1.03% to 26,446 points, adding 270 points. In the foreign exchange market, the yen did not change much against the dollar, at 132.30, and against the euro at a value of 142.20.
Asian stocks rose to a six-month high on Wednesday as the dollar held steady as investors await US inflation data for guidance on Federal Reserve interest rate policy. MSCI’s broader index of Asian-Pacific shares outside Japan rose 0.82% to hit a six-month high of 538.56. Australia’s S&P/ASX 200 Index rose 0.90%. Futures indicate that the positive mood is likely to continue in Europe, with Eurostoxx 50 futures up 0.54%, Germany’s DAX up 0.57% and the FTSE up 0.37%.
Inflation is in focus
The macroeconomic calendar is slim today, but investors are worried about the spread tomorrowAmerican inflation. It is estimated that US prices will decline from 7.1% in November to 6.6%. Its decline from the peak has already begun to reduce consumption, as evidenced by the ISM service sector index released last Friday, which fell below the 50-point threshold that defines deflation. ISM Servizi only missed 50 points once after the 2008-2009 financial crisis, during the raging Covid in 2020.
The market sees the end of the crisis
Furthermore, cost-of-living statistics are an important component of weighting in determining cost-of-living Federal Reserve to raise interest rates. In fact, the market assumes that the US central bank will not be able to raise interest rates above 5%. Yesterday, Federal Reserve Chairman Jerome Powell attended a seminar of the Swedish Riksbank and avoided making any comments about interest rates and the silence was interpreted as a reflection of the desire for an increasingly less aggressive monetary policy.
Yesterday’s old continent price lists stopped (il FTSEMIB (closed the session at -0.08%) and took advantage after the rebound that led them to that the highest in nearly a year.
Halbert Gray writes for Hardwood Paroxysm, covering news, politics, business, technology, sport, entertainment, and lifestyle. He focuses on clear reporting, current affairs, and stories that matter to readers, providing reliable information in an accessible and engaging way.
