Stocks Fluctuate Ahead of U.S. CPI; Dollar Steady

Asian stocks were mixed Wednesday as investors awaited a key report on U.S. inflation. Treasuries and the dollar were steady. Shares rose in Japan and saw modest gains in Australia and Hong Kong. Chinese stocks were little changed, while those in South Korea retreated after the country posted a record number of coronavirus cases. U.S. and European futures fluctuated. Earlier, the S&P 500 climbed to an all-time high, while the tech-heavy Nasdaq 100 declined. Crude oil was steady after bouncing from a three-week low as a report showed shrinking inventories.

Data out Wednesday are expected to show prices paid by U.S. consumers grew in July at the slowest pace in five months, though remain elevated.

Investor focus on U.S. price data comes as Federal Reserve officials talk up the prospects of unwinding some of the fiscal stimulus that has helped the recovery from the pandemic. Chicago Fed President Charles Evans said he expects substantial further progress later this year on the central bank’s tapering intentions.

Meanwhile, the Senate passed a $550 billion infrastructure plan, sending the legislation to the House for a vote, though investors believe it will take years for the impact of the spending to be felt.

Elsewhere, Bitcoin was back above $45,000 amid renewed fervor for the digital coin. A change to cryptocurrency reporting rules in the infrastructure bill was blocked in the Senate, leaving language for broad oversight of virtual currencies in the legislation.

Stocks

S&P 500 futures were little changed as of 7 a.m. in London. The S&P 500 rose 0.1%Nasdaq 100 contracts were little changed. The Nasdaq 100 fell 0.5%Topix index rose 0.9%Australia’s S&P/ASX 200 Index rose 0.2%Kospi index fell 0.7%Hang Seng Index rose 0.1%Shanghai Composite Index rose 0.1%Euro Stoxx 50 futures were little changed

Currencies

The Japanese yen was at 110.69 per dollarThe offshore yuan traded at 6.4852 per dollarThe Bloomberg Dollar Spot Index edged upThe euro traded at $1.1716

Bonds

The yield on 10-year Treasuries held at 1.35%Australia’s 10-year bond yield rose two basis points to 1.22%

Commodities

West Texas Intermediate crude was at $68.27 a barrelGold was at $1,734.50 an ounce, up 0.3%

Stocks Fluctuate Ahead of U.S. CPI; Dollar Steady: Markets Wrap, Bloomberg, Aug 11