Global stocks mixed ahead of US inflation update

Beijing: Asian stocks were mixed and European markets opened lower Tuesday ahead of a US inflation update that traders hope will encourage the Federal Reserve to ease off plans for more interest rate hikes. London, Frankfurt and Hong Kong fell. Shanghai and Tokyo rose. Oil prices declined. Traders worry repeated rate hikes by the Fed and other central banks to cool inflation that is at multi-decade highs might tip the world into recession. They hope Thursday's report on US consumer prices will show inflation moderating, reducing the need to slow economic activity further.

"Traders are bringing back talk of a 'soft landing,' which could support risk equities," said Anderson Alves of ActivTrades in a report. If the data show lower US inflation, "another Dovish wave may hit markets," helped by "easing recession fears."

In early trading, the FTSE 100 in London lost 0.4 per cent to 7,697.35. The DAX in Frankfurt shed 0.3 per cent to 14,745.01 and the CAC 40 in Paris retreated 0.6 per cent to 6,863.40. Futures for Wall Street's benchmark S&P 500 index and the Dow Jones Industrial Average were off 0.2 per cent. On Monday, the S&P dipped 0.1 per cent and the Dow lost 0.3 per cent. The Nasdaq composite gained 0.6 per cent.