Global stocks are mixed as investors wait for US inflation data

BEIJING (AP) – Global equity markets were mixed on Tuesday as investors waited for an update on US inflation that was stronger than expected.

London and Shanghai fell while Frankfurt and Tokyo advanced.

Wall Street futures were higher a day after the benchmark S&P 500 closed higher, ending a five-day losing streak.

Investors were watching August inflation data. Headline inflation is above 5% as consumer and business activity picks up.

The surge in prices has raised fears that the Federal Reserve feels pressured to cut easy credit and other stimulus measures that are pushing up stock prices. But Fed officials have indicated they believe the hike is temporary and will keep interest rates low until a recovery is established.

“The risks can be on the upside,” DBS’s Eugene Leow said in a report. “Excessively loose monetary policy may not increase output or employment, but may exacerbate price pressures and further distort market signals.”

In early trading, the London FTSE 100 lost 0.4% to 7,043.76 while the Frankfurt DAX gained less than 0.1% to 15,713.20. The Parisian CAC 40 lost 0.7% to 6,630.38.

On Wall Street, futures for the S&P 500 and the Dow Jones Industrial Average rose less than 0.1%.

On Monday, the S&P 500 rose 0.2%, supported by stocks in banking, energy and communications. The S&P 500 had just experienced its biggest weekly decline in three months.

The Dow Jones rose 0.8% while the Nasdaq composite slipped 0.1%.

Trade on Wall Street is choppy as investors try to understand how the economy will develop as the spread of the more contagious delta variant of the coronavirus and measures to contain it hurt consumer spending and growth in the use.

US retail sales in August are expected to be released on Thursday.

In Asia, the Shanghai Composite Index fell 1.4% to 3,662.60 while the Nikkei 225 in Tokyo gained 0.7% to 30,670.10. The Hang Seng in Hong Kong lost 1.2% to 25,504.74.

The Kospi in Seoul rose 0.7% to 3,148.83 while the S & P-ASX 200 in Sydney rose 0.2% to 7,437.30.

The Indian Sensex gained 0.2% to 58,283.75. New Zealand and Bangkok fell while Singapore and Jakarta won.

In energy markets, benchmark US crude gained 61 cents to $ 71.06 a barrel in electronic trading on the New York Mercantile Exchange. The contract gained 73 cents Monday to $ 70.45. Brent crude, used for the price of international oils, rose 67 cents to $ 74.18 a barrel in London. It added 59 cents the previous session to $ 73.51 a barrel.

The dollar was little changed at 110.01 yen. The euro rose to $ 1.1824 from $ 1.1804.