Asian, European markets rise as crucial US inflation data looms

Asian, European markets rise as crucial US inflation data looms

HONG KONG: Asian and European stocks enjoyed further gains yesterday as traders jostled for position ahead of the release of US inflation data later in the day that could have a huge bearing on the Federal Reserve’s rate hike plans. A broadly positive week for global equities continued on Wednesday thanks to some healthy earnings results, the further reopening of economies and signs of an easing in Russia-Ukraine tensions. While the mood for now is positive, nerves are on edge as the US consumer price index figures come up for release.

Commentators warn that a reading above the forecast 7.2 percent — which would be a new four-decade high — would pressure the Fed to act more aggressively to rein in prices. Some Fed officials on Wednesday said policymakers would make their decisions based on data coming across their desks, with a 50-basis-point hike — as opposed to the usual 25 basis points — was not off the table just yet.

Surging inflation and bets that the US central bank will end its pandemic-era cheap cash policies have weighed on world markets in recent months, stalling a two-year rally that saw them hit record or multi-year highs. But there is a feeling