No Clear Trend for Global Stocks Ahead of Key US Inflation Data
2 Min Read
The global stock market is mixed as key stocks in the US made slight gains after losing ground last week amid a rally of oil prices.
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Wall Street rebounds from a bad week. (Bloomberg)
The global stock market had no clear trend Monday, with Wall Street mostly rebounding from a bad week as traders await key inflation-related US government data.
The data to be provided by the government will indicate whether inflation in the United States had moderated or worsened at a time where signs of a slow recovery are up.
The said signs caused the markets to be shaky and uncertain, especially as COVID-19 infection rates surge and inflation is on the rise. This could lead the federal government to tighten its monetary policies sooner than anticipated.
The government report on consumer prices is to be issued Tuesday. Analysts will scrutinize the report, which could either amplify or mitigate inflation worries one week ahead of the Federal Reserve's closely-watched meeting.
The US Federal Government has argued that surges in prices are ephemeral, asserting that they do not require a sharp shift in monetary policy. The market largely accepted this view.
Although both Dow Jones (UP 0.8%) and S&P 500 (UP 0.2%) finished higher, Nasdaq (DOWN 0.1%) dipped. All three indices lost ground last week.
JJ Kinahan of TD Ameritrade attributed the losses to the corporate earnings season being mostly over. "We're going into this strange period, where you kind of have a lack of numbers."
Europe's main equity markets advanced, while those in Asia were mixed - meaning they had no clear trend.
Unlike the stocks, oil prices rallied after a positive forecast from the Organization of the Petroleum Exporting Countries regarding oil demand in 2022.
Oil prices gained ground this week, with Brent North Sea crude earning a 0.8% increase, setting it at $73.51 per barrel, and the West Texas Intermediate earning 1.0%, setting it at $70.45 per barrel.
