(Price updated at 1100 GMT)
by Amanda Cooper
LONDON, June 13 (Reuters) – Global shares rose on Tuesday, taking their lead from an upbeat session on Wall Street ahead of key US inflation data that could shape the Federal Reserve’s monetary policy outlook.
Consumer inflation data on Tuesday and wholesale data on Wednesday could provide investors with evidence of how successful the Fed has been in reining in price pressures, and an indication of how much further US rate hikes may be needed.
The MSCI All-World Index was last up 0.3%. Technology stocks edged higher in most markets. In Europe, shares in Hexagon rose 6.4% after the Swedish industrial group signed a cooperation agreement with Nvidia.
Nvidia shares have soared nearly 200% this year, briefly pushing the company’s market value above $1 trillion, as investor enthusiasm for anything with exposure to artificial intelligence has fueled the entire sector. has been raised up.
Anticipating a flood of capital into chip-related companies also helped push Japan’s Nikkei index to its highest level in 33 years on Tuesday.
On Monday, the S&P 500 and Nasdaq rose to their highest closing levels since April 2022.
The S&P 500 has entered a technical bull market as gains in market giants Amazon, Apple and Tesla have lifted it more than 20% from its October 2022 low. So far this year, the S&P has gained 13%, but its equal-weighted equivalent, which minimizes the influence of the largest companies in the index, is up only 3%.
The Fed is expected to take a break from raising rates, but last week’s surprise hikes from the Reserve Bank of Australia and the Bank of Canada served as a reminder that pauses in the rate cycle are sometimes just like that.
“To me, it’s 50/50 – they can hike – and I think they should, as it will give them more flexibility in July and for the rest of the year,” said Michael Hewson, chief market strategist at CMC Markets. .
“We are closer to ‘peak Fed’ than anything else. So, to me, it is a question of how much more juice the dollar has got before it starts bottoming out again,” he said.
“I can’t say, with any confidence, that the Fed has more than 25 basis points to go, if that, and I can’t say the same for the ECB, or the Bank of England,” he said. ,
The BoE meets next week and is forecast to raise interest rates by another quarter point from 4.50% currently.
a very british problem
Tuesday’s data showed Britain’s wage growth accelerated sharply in the three months to April, which could complicate matters for the central bank, which is already battling inflation that is four times its target of 2%. is more.
City Index Sr. said, “The key point here is that not only was unemployment not getting higher, but we’ve got strong jobs growth and wage growth is still very high and that’s going to make the Bank of England very uncomfortable ” said market analyst Fiona Cincotta.
Currency markets show traders now expect UK rates at around 5.6% by February, up from a terminal rate of 4.85% by November a month ago.
The European Central Bank, meanwhile, is expected to raise rates by 25 basis points on Thursday and signal it has more room to tighten policy, while the Bank of Japan is set to cut its ultra-high-risk policy after meeting on Friday. The loose policy is expected to be maintained.
In currencies, the dollar index, which measures the US currency’s performance against six others, fell 0.2% to 103.32. Sterling rose 0.4% to $1.2567 against the dollar after UK wages data, while the euro rose 0.4% to $1.0796.
The dollar was flat at 139.57 against the yen.
In commodities, Brent crude futures, which are down 40% over the past year, were up 2% at $73.33 a barrel, while US crude futures rose 1.8% to $68.31. Gold rose 0.5% to $1,967 an ounce.
(Additional reporting by Farooq Sulaiman in London and Julie Zhu in Hong Kong; Editing by Christopher Cushing, Jamie Freed, Simon Cameron-Moore and Connor Humphreys)