Global markets focused on US inflation

As markets await US consumer inflation data, growth concerns are on investors’ agenda.

Investor confidence continues to be negatively affected by the weak outlook for the Chinese economy and concerns that the Fed is waiting too long to loosen monetary policy.

These concerns are fueled by the fact that Brent crude oil fell below $ 70 a barrel on Tuesday for the first time since late 2021.

Christof Ruehl, senior analyst at Columbia University’s Center for Global Energy Policy, said of the drop in oil, “It is very useful, especially for central banks. It reduces the pressure on inflation, which is exactly what central banks need right now.”

Wall Street indices, which closed in the plus on Tuesday, are declining in futures trading. While indices are falling in Asia, bonds are gaining value. MSCI Asia Pacific Index declined for the third consecutive trading day.

The appreciation of the Japanese yen with the statements of the Bank of Japan (BOJ) official Junko Nakagawa pulled the Nikkei 225 index down by nearly 2 percent.

Kieran Calder, head of Asian equity research at Union Bancaire Privee, said, “There is a lot of uncertainty in the markets today ahead of the expected rate cut next week. “Against that backdrop, there’s more risk appetite and a few factors that are causing markets to fall – low oil, weak China, strong yen. The Bloomberg Dollar Index is negative this morning after three straight days of gains.