Global Markets Brace for U.S. Consumer Price Data Impact

Global markets held steady ahead of crucial U.S. consumer price data, which could influence monetary policy. Anticipation surrounds earnings reports from major banks. Key movements included Japanese yen fluctuations and bond yield increases. U.S. producer price data surprised with a tame outcome, impacting the dollar and Treasury yields.

Global markets were in a holding pattern on Wednesday as investors awaited U.S. consumer price data, which could influence future monetary policy decisions. The earnings expectations of major banks also kept stakeholders on edge.

U.S. equity futures remained largely flat in Asian trading. Meanwhile, Pan-European STOXX 50 futures nudged up 0.1%, and UK FTSE futures saw a 0.2% increase ahead of the British inflation report, which could affect gilt markets. In the Asian market, the MSCI's broad index of Asia-Pacific shares outside Japan eased by 0.2%. Japan's Nikkei oscillated between gains and losses, ending 0.3% down.

The day saw significant movements in the Japanese yen and bond yields as the dollar dropped 0.4% to 157.3 yen, with speculation rising about the Bank of Japan's interest rate decisions. Investors are closely watching the U.S. core CPI data, with expectations set at a 0.2% increase, though any deviation could cause shifts in global market trends.

(With inputs from agencies.)