Global Markets Rise Ahead of U.S. Inflation Data
By Dow Jones Newswires StaffU.S. inflation data for July is the key focus Tuesday with investors closely watching the extent to which tariffs are affecting prices amid expectations for a sharper rise in core goods prices compared with June. The inflation print will be a key element in determining whether the Federal Reserve cuts rates in September.The data come after President Trump said Monday that he plans to nominate E.J. Antoni to lead the Bureau of Labor Statistics. Antoni has been a critic of how the agency handles jobs data; Trump last month fired the agency's head following a weak jobs report. Trump on Monday also signed an executive order extending the deadline for higher tariffs on China until Nov. 9. U.S. stocks closed lower on Monday even as shares in Intel rose 4% after its CEO Lip-Bu Tan visited the White House. Gold prices slid after Trump said there would be no tariff on gold.U.S. futures were up modestly early in Europe. Global stock markets rose, with a record close for Japan's Nikkei after Monday's public holiday driven by easing concerns about the impact of U.S. tariffs on corporate earnings as well as rising demand for equipment to power artificial intelligence. Softbank ended up 6.9%. In Europe, the pan-European Stoxx Europe 600 gained 0.4% in early trading; the Stoxx Europe 600 gained 0.4% in morning trading, while the U.K.'s FTSE 100 was up 0.3%.The dollar was steady against a basket of currencies amid caution ahead of U.S. inflation data. Economists in a WSJ survey expect the data to show inflation accelerated to an annual rate of 2.8% in July from 2.7% in June. The DXY dollar index was recently trading flat at 98.508.The Swiss franc rose after Trump said Monday that he wouldn't impose tariffs on imported gold. As a major gold refining center, tariffs on gold would have represented a further blow for Switzerland after the country was hit with 39% U.S. tariffs. The euro was recently down 0.2% to 0.9418 francs, with the dollar down 0.2% to 0.8107 francs.Treasury yields were up, with the 10-year rising 1.4 basis points to 4.287%, while the 2-year Treasury yield was up 2 basis points to 3.774%, according to Tradeweb. In the U.K., the 10-year gilt yield climbed 3 basis points to 4.597% and sterling edged higher against the euro after data showed the U.K. unemployment rate held broadly steady and wage growth remained strong in the three months to June.Oil prices were little changed after Trump's extended trade truce with China; Brent crude was up 0.3% to $66.85 a barrel, while WTI inched 0.2% higher to $64.12 a barrel. Gold futures were also largely flat after Monday's slide.Write to Barcelona Editors at [email protected]