Stocks Brace for Inflation Figures – Europe Market Wrap

Ahead of eagerly anticipated US inflation statistics that will help determine when the Fed eventually shifts to monetary easing, US equities futures rose along with European stocks.

S&P 500 and Nasdaq 100 futures saw increases of 0.2% and 0.4%, respectively. US Treasury yields remained stable, and the dollar index was flat. Banks and basic resources led the increase in European equities.

The Bank of England’s fears about inflationary pressures were allayed when data revealed an unexpected rise in the unemployment rate and a halting of pay rises. As a result, UK stocks outperformed overseas markets and the British pound fell. Gilt rates decreased while the benchmark FTSE 100 increased by 0.9%.

The yield on Japan’s 10-year bond increased to its highest level in three months as a result of a Jiji report stating that the BoJ will stop negative interest rates at its meeting next week if wage data is robust.

As traders anticipated OPEC’s monthly report and industry data on US stocks, oil prices in the commodities market moved upward. Gold dropped from its all-time high. After breaking above $72,000 on Monday for the first time, Bitcoin was barely above that mark on Tuesday.

BoJ is said to mull a March hike with the outcome too close to call. [Yen strengthened]

UK Average Weekly Earnings YoY Actual 5.6% (Forecast 5.7%, Previous 5.8%) [Sterling weakened]