U.S. futures and European stocks both edged higher on Tuesday as investor focus turns to the release of key U.S. inflation numbers later in the day. This data is expected to give investors insight into the Federal Reserve’s approach to interest rate hikes going forward.
Futures on the S&P 500 advanced 0.2% during early trading, while Nasdaq 100 contracts gained 0.3%. Futures on the Dow Jones Industrial Average remained relatively unchanged.
European stocks rose as well, with the Stoxx Europe 600 gaining 0.5%. This increase stemmed from a boost delivered by telecommunications and travel and leisure stocks. Vodafone Group Plc was among the big risers after rival British telecom group Liberty Global Plc announced that it had acquired a stake in the company. TUI AG, the world’s biggest tour operator, also advanced after announcing that its summer bookings are running ahead of pandemic levels.
Inflation in the U.S. is expected to have accelerated from 0.1% in December to 0.5% in January while slowing from 6.5% to 6.2% on a year-on-year basis. After the S&P 500 rallied by almost 8% since the start of the year, Tuesday’s data should indicate whether or not investor optimism surrounding the easing of the Federal Reserve’s monetary policy was indeed justified.
