Stocks are mixed ahead of US inflation.
The stock market had a mixed day on Tuesday as traders awaited US inflation data for further hints on the interest rate future.
Prior to the release of the price data, JPMorgan Chase announced that its second-quarter earnings had more than doubled to $11.9 billion, thanks in part to revenues from cash set aside for bad loans during the pandemic.
Goldman Sachs, a competitor, will publish its earnings before the US inflation data is released.
The Bank of England removed longstanding restrictions on shareholder dividend payouts in the commercial banking sector on Tuesday, echoing a move by the US Federal Reserve.
But, according to Ipek Ozkardeskaya, senior analyst at Swissquote, “investors will be eagerly watching the US inflation figures today.”
A number above 5.0 percent, she said, “would likely resurrect concerns that inflation may not fade as quickly as US policymakers first believed.”
Some investors are afraid that when countries emerge from Covid lockdowns, higher inflation may prompt the Federal Reserve and other central banks to raise interest rates sooner than planned, delaying the recovery.
In recent months, rising oil costs have been a major cause of inflation in many countries.
Oil consumption climbed last month, according to a survey, as rising immunization rates helped maintain healthy economic activity. Crude futures gained somewhat on Tuesday.
However, the International Energy Agency warned in the study that prices will continue to fluctuate until OPEC+ agrees to increase supply.
At the same time, according to Oanda analyst Edward Moya, “the healthy crude demand picture is starting to take a knock as many countries continue to struggle with the more infectious Delta form.”
Meanwhile, Asian stock markets ended the day stronger, following Wall Street’s new highs.
At the halfway point, European indicators were stable.
In the coming weeks, the market will be paying careful attention to Federal Reserve Chairman Jerome Powell’s speech to US lawmakers on central bank policy on Thursday.
FTSE 100: Up 0.1 percent to 7,128.63 points in London.
FLAT at 15,785.27 on the Frankfurt DAX 30.
CAC 40 in Paris is down 0.2 percent at 6,545.02.
At 4,056.37, the EURO STOXX 50 is down 0.3 percent.
Nikkei 225 in Tokyo is up 0.5 percent to 28,718.24. (close)
The Hang Seng Index in Hong Kong is up 1.6 percent to 27,963.41. (close)
Shanghai Composite: 3,566.52, up 0.5 percent (close)
DOW UP 0.4 PERCENT AT 34,996.18 IN NEW YORK (close)
At 2100 GMT, the euro/dollar was trading at $1.1846, down from $1.1864 earlier.
Pound/dollar: $1.3859, down from $1.3886.
The euro/pound exchange rate is now 85.47, up from 85.42. Brief News from Washington Newsday.