Asian stocks, dollar pause ahead of key economic data

Asian stock markets and the dollar paused on Wednesday as investors awaited a rate cut in Canada and a US inflation report that could influence further rate cuts by the US Federal Reserve.

With high expectations for a US rate cut next week and with Wall Street near record highs, investors were cautious. The S&P 500 slipped 0.3 per cent on Tuesday, staying close to its all-time high.

US futures rose 0.1 per cent in the Asia session, while European futures and FTSE futures fell by 0.2 per cent and 0.4 per cent, respectively. The MSCI’s Asia-Pacific index outside Japan dropped by 0.4 per cent, and Japan’s Nikkei remained flat.

Economists surveyed by Reuters predict a 0.3 per cent increase in both headline and core US consumer price index for November. Analysts warn that any figure above 0.3 per cent could catch the market off guard.

In commodity markets, gold prices rose above their 200-day moving average, supported by China’s recent gold buying.

Oil prices also gained momentum, bolstered by China’s recent policy shift. Arabica coffee prices reached a record high due to concerns over a potential drought in Brazil.

Attribution: Reuters

Subediting: M. S. Salama