Stock markets wavered Tuesday as New York and London returned to action following public holidays, with investors now bracing for key inflation data later this week that could shed light on the interest-rate outlook.
Wall Street was mixed at the open as investors returned from the three-day Memorial Day weekend.
“There appears to be some post-holiday lethargy,” said Briefing.com analyst Patrick O’Hare.
European stocks were in the red in afternoon trading, with London’s FTSE 100 index down after its own long weekend.
“Risk sentiment has faltered in recent weeks, and global stock markets have experienced a mild sell off as the focus shifts to a plethora of economic data that is released this week,” said XTB research director Kathleen Brooks.
The eurozone’s May consumer prices data will be published Friday, followed by the Federal Reserve’s preferred gauge for inflation, the US personal consumption expenditures (PCE) index.
The PCE index is forecast to have slowed slightly in April from the previous month.
“This scenario will solidify expectations of a Fed rate cut in September if confirmed,” said ActivTrades analyst Ricardo Evangelista.
A number of US policymakers warned in recent weeks that they were cautious about cutting rates too soon and wanted to see more data proving price pressures are easing.
The European Central Bank, however, is expected to act before the Fed and cut its rates in June.
In commodities, oil prices rose further before a June 2 output meeting of OPEC and other major producers. They are tipped to maintain output cuts.
“If the OPEC+ production cuts are maintained in the third quarter, the oil market is likely to be undersupplied in the summer months,” said Commerzbank analyst Carsten Fritsch.
At the same time, the start of the US driving season — when many Americans hit the roads for their summer vacation — is widely expected to boost demand for motor fuel.
– Key figures around 1400 GMT –
New York – Dow: DOWN 0.2 percent at 38,985.26 points
New York – S&P 500: UP 0.1 percent at 5,305.80
New York – Nasdaq Composite: UP 0.2 percent at 16,953.38
London – FTSE 100: DOWN 0.5 percent at 8,275.43
Paris – CAC 40: DOWN 0.8 percent at 8,067.29
Frankfurt – DAX: DOWN 0.5 percent at 18,684.30
EURO STOXX 50: DOWN 0.5 percent at 5,036.18
Tokyo – Nikkei 225: DOWN 0.1 percent at 38,855.37 (close)
Hong Kong – Hang Seng Index: FLAT at 18,821.16 (close)
Shanghai – Composite: DOWN 0.5 percent at 3,109.57 (close)
Euro/dollar: UP at $1.0873 from $1.0857 on Monday
Dollar/yen: DOWN at 156.65 from 156.82 yen
Pound/dollar: UP at $1.2793 from $1.2774
Euro/pound: DOWN at 84.98 from 85.01 pence
West Texas Intermediate: UP 2.0 percent at $79.22 per barrel
Brent North Sea Crude: UP 0.5 percent at $83.54 per barrel
burs-cw/lth
