EUROPEAN FUTURES EDGE UP AHEAD OF U.S. CPI (0742 GMT) Has the market been too optimistic about the rate of inflation as of late?
We should have at least a semblance of an answer later today, when U.S. CPI figures land. Perhaps understandably, European futures are making tentative moves higher this morning. STOXX futures , DAX futures and FTSE futures are all up about 0.1%while U.S. futures are flat.
A majority of economists polled by Reuters think the U.S. Federal Reserve will raise interest rates at least twice more in coming months, with the risk they go higher still, and they see no cut by year-end. European earnings continue to trickle through, as does the impact of inflation on companies' performance. Norwegian aluminium producer Norsk Hydro said inflationary pressures in 2023 are likely to subside, though the outlook is "unpredictable", as it posted a bigger-than-expected fall in fourth-quarter core profit.
Meanwhile, holiday group TUI , said on Tuesday it was seeing a positive
travel recovery trend for the upcoming summer season.
(Lucy Raitano)
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