Market Jitters: Stocks, Dollar, and Inflation Data Awaited

U.S. stocks opened mixed with the Dow Jones down and the Nasdaq up, as investors anticipated upcoming inflation data. The ECB meeting also loomed, with rate cuts expected. Meanwhile, China's policy shift and Brazil's political situation influenced markets, with the dollar and oil prices reacting variably.

On Tuesday, U.S. stocks displayed mixed results as investors awaited fresh inflation data and additional economic updates later in the week.

The Dow Jones Industrial Average decreased by 0.35% in early trading, alongside a 0.10% rise in the S&P 500 and a 0.66% gain in the Nasdaq Composite. European shares lagged behind, with the STOXX 600 index falling 0.3% due to stalled momentum from China stimulus hopes. The primary events of the week, including U.S. inflation data set for Wednesday and a European Central Bank meeting on Thursday, remain pivotal.

Investors are particularly focused on Wednesday's consumer price index report for insights on U.S. inflation trends and the Federal Reserve's future policy. A recent Reuters poll revealed that 90% of economists predict a 25 basis point rate cut from the Fed at its meeting on December 18. Meanwhile, an ECB rate cut appears imminent, and investors are seeking clues on its policy direction. Additionally, U.S. sentiment received a lift from a report indicating a rise in small business confidence to its highest level in almost three and a half years this November.

(With inputs from agencies.)