Stock Market Today: Global stocks are mostly higher ahead of US inflation data and the US-China summit

Stock Market Today: Global stocks are mostly higher ahead of US inflation data and the US-China summit

TOKYO (AP) — Global stocks were mostly higher Tuesday ahead of potential market-moving developments, including the U.S.-China summit and data releases in the U.S., Japan and China.

US futures rose and oil prices also posted modest gains.

President Joe Biden is scheduled to meet with Chinese leader Xi Jinping later this week on the sidelines of a summit overlooking the Pacific Ocean in California. This will be the first direct meeting in a year between the leaders of the world’s two largest economies.

Investors are also awaiting an update on US consumer inflation and economists expect consumers to show prices paid were 3.3% higher in October than a year earlier, down from September’s inflation rate of 3.7%.

Early Tuesday, France’s CAC 40 index rose 0.3% to 7,105.69. The German DAX index rose 0.5% to 15,422.24 points. Britain’s FTSE 100 index rose two points to 7,427.77. The Dow Jones Industrial Average rose 0.1% while the S&P 500 rose 0.2%.

In Asian trading, Japan’s Nikkei 225 index rose 0.3% to close at 32,695.93. Australia’s S&P/ASX 200 index advanced 0.8% to 7,006.70 points. South Korea’s Kospi index added 1.2% to 2,433.25. Hong Kong’s Hang Seng Index lost nearly 0.2% to 17,396.86, while the Shanghai Composite Index rose 0.3% to 3,056.07.

“Asian stocks gained as investors awaited US inflation numbers, hoping for confirmation that interest rates had peaked. Meanwhile, positive geopolitical sentiment filled the backdrop as investors eyed the expected talks between the US and China, said Stephen Innes, managing partner at SPI. Asset Management, in a written comment.

China is scheduled to release monthly economic indicators on Wednesday, and Japan will also announce the latest growth figures.

On Monday, Wall Street drifted to a mixed finish, with the S&P 500 falling 0.1%. The Dow Jones Industrial Average rose 0.2%, and the Nasdaq Composite Index fell 0.2%.

US budget policies are also on the agenda. The House of Representatives is preparing to vote on a temporary package to keep the US government running in the new year and avoid a federal shutdown. If approved, the Senate will act next, before Friday’s deadline.

The US economy has remained strong, even though the Federal Reserve raised its key interest rate to its highest level since 2001 in hopes of eliminating high inflation.

As concerns grow about whether growth will remain resilient as the full effects of rate hikes play out across the system, investors are watching to see if prices remain cool.

The hope is that inflation will continue to decline from its peak of more than 9% in the summer of 2022. This could convince the Federal Reserve that there is no need for further rate hikes, and even accelerate the timeline for potential rate cuts.

With inflation generally slowing, Federal Reserve Chairman Jerome Powell recently suggested that the recent rise in longer-term Treasury yields may serve as an alternative to further rate hikes. But Powell said last week that the Fed would not hesitate to raise interest rates again if necessary.

In other trading, the price of benchmark US crude oil added 14 cents to $78.40 a barrel in electronic trading on the New York Mercantile Exchange. It rose $1.09 on Monday. Brent crude, the international standard, added 14 cents to $82.66 a barrel.

In currency trading, the US dollar fell to 151.63 Japanese yen from 151.72 yen. The euro rose to $1.0714 from $1.0701.

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