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Growth on Stock Markets Ahead of Inflation Report in the U.S.

On Wall Street, stock prices rose on Tuesday for the second consecutive day as investors hope that the new report will show that inflationary pressures in the U.S. continue to ease.

The Dow Jones strengthened by 0.93 percent to 34,261 points, while the S&P 500 rose by 0.67 percent to 4,439 points, and the Nasdaq index increased by 0.55 percent to 13,760 points.

The rise in the indices is attributed to investors’ hopes that the consumer price report for June, which will be released on Wednesday, will show that inflationary pressures in the U.S. continue to ease.

On Thursday, the report on producer prices for June will be published.

These data will, among other things, influence further decisions by the U.S. central bank regarding interest rates.

In recent days, several Fed officials have indicated that interest rates will need to be raised further to curb inflation, but also that the end of the interest rate hike cycle is approaching.

At the June meeting, Fed leaders kept interest rates unchanged until the effects of the previous tightening of monetary policy on the economy and inflation are seen.

Analysts believe it is almost certain that the Fed will raise interest rates by an additional 0.25 percentage points at this month’s meeting.

Among the biggest gainers yesterday were stocks in the energy sector, thanks to a strong rise in oil prices.

Stock prices of banks also rose significantly as investors hope that the quarterly business results of banks will be good, given that interest rates have risen significantly over the past year.

The season for the announcement of business results for banks and companies in the second quarter begins at the end of this week.

In a Reuters survey, analysts estimate that the earnings of companies in the S&P 500 index in the past quarter were 6.4 percent lower than in the same period last year.

Stock prices also rose yesterday on European exchanges. The London FTSE index strengthened by 0.12 percent to 7,282 points, while the Frankfurt DAX rose by 0.75 percent to 15,790 points, and the Paris CAC increased by 1.07 percent to 7,220 points.

Most Asian Markets Rose

On most Asian exchanges, stock prices rose on Wednesday, similar to Wall Street the day before, while the dollar is under strong pressure ahead of the inflation report in the U.S.

The MSCI Asia-Pacific index was up 0.6 percent around 7:00 AM, strengthening for the third consecutive day.

Meanwhile, the Japanese Nikkei index weakened by 0.5 percent, while stock prices in Shanghai slipped by 0.1 percent. In Australia, South Korea, and Hong Kong, prices rose between 0.1 and 1.2 percent.

Thus, most Asian markets are following yesterday’s rise on Wall Street. The Dow Jones strengthened by 0.9 percent, while the S&P 500 rose by 0.7, and the Nasdaq index by 0.55 percent.

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