Global stocks mixed as investors await US inflation data

BEIJING (AP) — Global stock markets were mixed yesterday as investors waited for an update on United States (US) inflation that has been stronger than expected.

London and Shanghai declined while Frankfurt and Tokyo advanced, with the benchmark Nikkei 225 hitting a 31-year high.

Wall Street futures were higher a day after the benchmark S&P 500 index closed higher, snapping a five-day losing streak.

Investors were watching for August inflation data. Headline inflation stands above five per cent as consumer and business activity revives.

The price spike has prompted fears the Federal Reserve might feel pressure to roll back easy credit and other stimulus that boosts share prices. But Fed officials have indicated they believe the surge is temporary and they will keep interest rates low until a recovery is established.

“Risks may be tilted to the upside,” Eugene Leow of DBS said in a report. “Excessively loose monetary policy may not increase output or employment but may worsen price pressures and distort market signals further.”

A woman passing by a bank’s electronic board showing the Hong Kong share index at Hong Kong Stock Exchange. PHOTO: AP