World shares marked time on Tuesday, holding just shy of record highs ahead of highly anticipated U.S. inflation data, while Japanese bonds were squeezed as the central bank pulled back a little on its bond buying programme. A broadly positive first quarter-earnings season has helped stock markets in recent weeks, but investors this week have been cautious ahead of important U.S. inflation data. "Today's a warm up, but tomorrow's U.S. CPI is what people are waiting for," said Jan von Gerich, chief strategist at Nordea.
World shares marked time on Tuesday and were still just shy of record highs ahead of highly anticipated U.S. inflation data, while Japanese bonds were squeezed as the central bank pulled back a little on its bond buying programme. A broadly positive first quarter-earnings season has helped stock markets in recent weeks, but investors this week have been cautious ahead of important U.S. inflation data. The U.S. producer price index due at 1230 GMT is Tuesday's main macroeconomic event, though it will likely be overshadowed by Wednesday's consumer inflation data numbers, one of the major data points of the month.
Global markets are looking ahead to the Consumer Price Inflation print on Wednesday in the US, which will give clues as to the Federal Reserve's thinking on rate path.