Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
After last week’s turmoil, investors seem to have rediscovered their appetite for risk.
Asian stock markets are rallying across the board, with Japan and Australia both up around 1%.
Associated Press have the details:
European markets are also expected to rise, adding to yesterday’s gains, as the City looks to put recent volatility behind it.
Asia stocks climb despite rising US inflation & stronger Yen as equity investors showed signs of warming to a world w/ #inflation & sustained pace of tightening in US monetary policy. Dollar remains on defensive, hits 15-month low vs yen. Oil, gold supported by dollar weakness. pic.twitter.com/IHqv933Onm
The markets have also shaken off Wednesday’s surprisingly strong inflation data.
As we covered yesterday, shares were briefly hit after US consumer prices jumped by 0.5% last month, but in the end the Dow Jones finished the day up 1%.
Higher inflation raises the pressure on the world’s central bankers, particularly those at the Federal Reserve, to tighten monetary policy by raising interest rates. That would be bad for bond prices, so it’s probably a mistake to assume the markets have calmed down now.
As Jasper Lawler of London Capital Group says:
Today, investors will be looking at the latest American weekly unemployment figures, and new data showing how US factories fared last month, and how their prices changed.
Plus, several European Central Bank policymakers are giving speeches today, which might move the markets.
8.15am GMT: ECB’s Yves Mersch speaks in Paris
10.45am GMT: ECB Peter Praet speaks at the French finance ministry
1.30pm GMT: US weekly jobless figures
1.30pm GMT: US producer prices data for January
2.15pm GMT: US industrial production for January
Morning all! – Asian stocks traded higher as the region received a tailwind from US – The USD languished from the prior day’s losses. AUD/USD remained firmer post-jobs data- Highlights: US weekly jobs, Philly Fed, PPI, IP and a slew of speakers