Global stocks edged higher Wednesday, February 14, as investors awaited the release of U.S. inflation data. Trading was winding down in China ahead of the Lunar New Year holidays.
France’s CAC 40 added 0.8 per cent to 5,148, while Germany’s DAX rose 0.7 per cent to 12,281. Britain’s FTSE 100 was up 0.7 per cent at 7,218. U.S. shares were set for gains, with Dow futures up 0.5 per cent and the S&P 500 futures 0.4 per cent higher.
Investors are awaiting the U.S. Labor Department’s monthly report on consumer prices, due later in the day. The report takes on added importance since recent swings in financial markets were touched off by worries that inflation might rise too quickly, which could prompt the Federal Reserve to accelerate monetary tightening.
“It certainly feels like the proverbial calm before the storm and rightly so as there are plenty of reasons to be cautious, but whether it warrants the present sense of foreboding in the markets or not, equity investors seem undeterred by the possibility of higher yields,” Stephen Innes of OANDA said in a commentary.
Japan’s economy grew at a slower than expected 0.5 per cent annual pace in the October-December quarter, the eighth straight quarter of expansion. Growth for the entire calendar year was 1.6 per cent, up from 0.9 per cent in 2016. The preliminary data released Wednesday buttressed economists’ expectations that growth will slow in the coming year.
Japan’s benchmark Nikkei 225 slipped 0.4 per cent to finish at 21,154.17, while Australia’s S&P/ASX 200 lost 0.3 per cent to 5,841.20. South Korea’s Kospi gained 1.1 per cent at 2,421.83. Hong Kong’s Hang Seng rose 2.3 per cent to 30,515.60, while the Shanghai Composite index added 0.5 per cent to 3,199.16. Markets in Southeast Asia were mixed, ctvnews reports.
