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27/05/24
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Global Shares Inch Up Ahead Of EU, US Inflation Data
On Monday, global shares were firmer as investors got ready for fresh inflation data that may set the scene for a rate cut in Europe as soon as next week and the U.S. easing policy within the next few months.
Holidays in the United States and Britain resulted in thin trading before the release of the Federal Reserve’s preferred measure of inflation, the core personal consumption expenditures (PCE), on Friday.
MSCI’s widest index of stocks across the globe rose 0.2%, after slipping 0.38% last week and slightly lower than the all-time peak of more than 796.
Median estimates this week show that the PCE price index will have risen by 0.3% in April according to a poll by Reuters, sticking to the annual pace of 2.8%, with risks skewed to the downside.
U.S. economic recovery is still uneven, as sectors like manufacturing slowing down, while services are still resilient.
On Friday, data for inflation in the eurozone are also due and economists believe the expected increase to 2.5% wouldn’t stop the European Central Bank from cutting rates next week.
Policymakers Fabio Panetta and Piero Cipollone both over the weekend flagged a coming cut, while markets expect an 88% probability of a cut to 3.75% on June 6.
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