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| | US Market |  | | NYSE | AMEX | Dow Jones | Nasdaq |  |  |  |  | | Please click on the images to view our interactive charts | | The major U.S. index futures are pointing to a sharply lower opening on Wednesday following the rebound seen over the three previous sessions.
The downward momentum on Wall Street comes following the release of a report from the Labor Department showing a bigger than expected increase in consumer prices in the month of January.
The bigger than expected increase in consumer prices may add to recent concerns that the Federal Reserve will raise interest rates faster than previously anticipated.
After seeing initial weakness, stocks turned higher over the course of the trading session on Tuesday. With the turnaround, the major averages extended the upward move seen over the two previous sessions.
The major averages ended the day firmly in positive territory. The Dow edged up 39.18 points or 0.2 percent to 24,640.45, the Nasdaq advanced 31.55 points or 0.5 percent to 7,013.51 and the S&P 500 rose 6.94 points or 0.3 percent to 2,662.94.
The rebound came as traders looked ahead to the release of reports on consumer prices and retail sales on Wednesday.
The data is likely to have a significant impact on how traders perceive the Federal Reserve will act regarding future interest rate hikes.
Reports on producer prices, housing starts, and homebuilder confidence are also due to be released later in the week.
Tobacco stocks showed a substantial move to the upside on the day, driving the Dow Jones Tobacco Index up by 2.8 percent. With the jump, the index reached a record closing high.
Retail and real estate stocks also moved to the upside, while considerable weakness was visible among energy stocks.
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| | U.S. Economic Reports | | | | CADUSD | Oil | Gold | Allbanc |  |  |  |  | | Please click on the images to view our interactive charts | |
Consumer prices in the U.S. increased by more than anticipated in the month of January, according to a report released by the Labor Department on Wednesday.
The Labor Department said its consumer price index climbed by 0.5 percent in January after edging up by a revised 0.2 percent in December.
Economists had expected consumer prices to rise by 0.3 percent compared to the 0.1 percent uptick originally reported for the previous month.
Excluding food and energy prices, core consumer prices rose by 0.3 percent in January after inching up by 0.2 percent in December. Core prices had been expected to increase by 0.2 percent.
A separate report from the Commerce Department showing an unexpected decrease in retail sales in January may also weigh on the markets.
The Commerce Department said retail sales fell by 0.3 percent in January compared to economist estimates for a 0.2 percent uptick in sales.
Revised data showed that retail sales were unchanged in December compared to the previously reported 0.4 percent increase.
Excluding a decrease in sales by motor vehicle and parts dealers, retail sales were unchanged in January after inching up by 0.1 percent in December. Ex-auto sales had been expected to climb by 0.4 percent.
At 10 am ET, the Commerce Department is scheduled to release its report on business inventories in the month of December. Business inventories are expected to rise by 0.3 percent.
The Energy Information Administration is scheduled to release its report on oil inventories in the week ended February 9th.
Crude oil inventories are expected to increase by 2.6 million barrels after climbing by 1.9 million barrels in the previous week. |
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| | Europe |
European stocks have come under pressure following the release of the U.S. inflation data after moving to the upside earlier in the session.
While the German DAX Index has fallen by 0.8 percent, the French CAC 40 Index is down by 0.5 percent and the U.K.?s FTSE 100 Index is down by 0.3 percent.
Swiss bank Credit Suisse has jumped after revealing that its fourth quarter net loss narrowed from last year.
Sky Plc and BT Group have also moved higher in London after they agreed to pay 4.464 billion pounds to secure the broadcast rights for the bulk of Premier League football games from the 2019/20 season.
Food group Danone has moved higher on news company intends to sell part of its 21.3 percent stake in Japan-listed Yakult Honsha Co.
Meanwhile, German steelmaker Thyssenkrupp has moved lower after its first quarter profits and revenue came in lower than estimated.
Galliford Try has also come under pressure on equity dilution worries after the construction group and homebuilder announced a 150 million capital raising to help cover the impact of Carillion's liquidation.
On the data front, the euro area economy grew at a slightly slower pace in the fourth quarter, flash estimate published by Eurostat showed.
GDP climbed 0.6 percent sequentially following the third quarter's 0.7 percent expansion. The growth came in line with the preliminary flash estimate published on January 30th.
Eurozone industrial production for December rose 0.4 percent month-on-month, beating forecasts for 0.2 percent growth.
Separate reports showed German consumer price index rose 1.6 percent year-on-year in January after a 1.7 percent increase in December, while the German economy grew 0.6 percent sequentially in the fourth quarter, in line with expectations but slightly slower than the 0.7 percent expansion in the third quarter
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| | Asia | | | | USDCAD | USDEUR | USDGBP | USDJPY |  |  |  |  | | Please click on the images to view our interactive charts | |
Asian stocks ended mixed in cautious trading on Wednesday ahead of Lunar New Year holidays and the U.S inflation report due later in the day, which may provide further clues about the outlook for interest rates.
It is feared that a spike in inflation on the back of a tightening labor market and increased government spending may push Treasury yields higher once again and send equities spiraling lower.
Chinese stocks eked out modest gains in thin trading ahead of the weeklong Lunar New Year holiday starting on Thursday. The benchmark Shanghai Composite Index rose 14.52 points or 0.5 percent to 3,199.48. Hong Kong's Hang Seng Index surged up 676.07 points or 2.3 percent to 30,515.60.
Meanwhile, Japanese shares hit a four-month low as the dollar slid to a 15-month low against the yen and data showed the country's GDP grew at a slower than expected 0.5 percent annual pace in the fourth quarter.
The Nikkei 225 Index dropped 90.51 points or 0.4 percent to 21,154.17, the lowest closing level since October. The broader Topix Index closed 0.8 percent lower at 1,702.72 amid across-the-board selling.
Panasonic, Toyota Motor and Softbank ended down around 2 percent each. Mitsui Mining & Smelting slumped 4.7 percent and Mitsubishi Materials tumbled 8.8 percent.
Fujifilm lost 2 percent after Xerox shareholder Darwin Deason filed a lawsuit alleging that the U.S. photocopier maker's board failed shareholders by approving a merger deal with Fujifilm that undervalued the company.
Australian shares ended lower, dragged down by financials on concerns over possible interest rate hikes by major central banks. Disappointing consumer sentiment figures also weighed on the markets.
The benchmark S&P/ASX200 Index slid 14.70 points or 0.3 percent to 5,841.20, while the broader All Ordinaries Index ended down 17 points or 0.3 percent at 5,940.
Commonwealth Bank shares tumbled 3 percent on going ex-dividend. ANZ shed 0.3 percent and Westpac eased 0.1 percent.
On the other hand, mining heavyweights BHP Billiton and Rio Tinto ended slightly higher, and blood products company CSL soared 5.1 percent after lifting its full-year profit guidance and half-year dividend.
Insurance Australia Group shares jumped 3.2 percent. The insurance giant said it is considering selling parts of its disappointing Asian arm.
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| | Commodities |
Crude oil futures are falling $0.51 to $58.78 a barrel after inching up $0.09 to $59.29 a barrel on Tuesday. Meanwhile, after climbing $4 to $1,330.40 an ounce in the previous session, gold futures are sliding $3.80 to $1,326.60 an ounce.
On the currency front, the U.S. dollar is trading at 107.18 yen compared to the 107.82 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.2302 compared to yesterday?s $1.2352.
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