(Bloomberg) — Global stock prices stalled Tuesday as the boost from China’s latest stimulus promise faded and traders await key U.S. inflation data later this week.
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Contracts on the S&P 500 and Nasdaq 100 were steady, while Europe’s Stoxx 600 index posted an eight-day winning streak. European miners and luxury names retreated, a day after the sectors got a boost from Beijing’s pledge for looser monetary policy. These moves follow a lackluster session in Asia, where Chinese shares opened firmer but gave up most of their gains towards the end.
Software producer Oracle Corp. was a key premarket driver in the US, losing as much as 8.8% after disappointing second-quarter results. Nvidia Corp. appeared poised to extend losses following news that China is investigating the AI chipmaker for alleged anti-monopoly violations. In Europe, Delivery Hero SE fell as its Middle East unit Talabat Holding Plc turned negative in its trading debut. Shares in Ashtead Group Plc fell after the industrial equipment rental company proposed moving its primary listing to the US from London.
Investors are looking forward to Wednesday’s US consumer price index, the last major price reading before the Federal Reserve’s policy meeting. Any indication that progress on inflation has stalled could undermine the chances of a third straight rate cut. Yields on Bloomberg’s Dollar Spot Index and government bonds rose slightly.
“It looks like the markets are running out of steam towards the end of the year and participants are waiting for some sort of new catalyst,” said Lee Hardman, strategist at MUFG Bank Ltd.
Looking at upcoming inflation data, Hardman noted that even a relatively robust monthly payroll had not derailed bets on further policy easing.
“It would take a very bad CPI report tomorrow for the market to change expectations for a cut this month. You have to assume that if it comes in line with expectations, it won’t really change opinions,” he said.
This week is a key one for policymaking, with the European Central Bank expected to cut interest rates for the fourth time this year, against the backdrop of a deteriorating economic outlook and political unrest in France and Germany. The Swiss National Bank is also expected to cut interest rates on Thursday.
