Stocks slightly increase before the US inflation examination, while the yen declines

On Tuesday, global stocks saw a slight increase as investors awaited U.S. inflation data that could influence Federal Reserve decisions on rate cuts. However, the yen experienced a decline after Japanese officials hinted at a delay in any imminent policy changes by the central bank. Gold prices remained just below record levels, while the dollar strengthened marginally ahead of the U.S. consumer price index (CPI) release.

The MSCI All-World index rose by 0.1%, driven by gains on Wall Street and in Asian technology stocks. Investors are anticipating multiple interest rate cuts by the Fed this year, possibly starting in June, with Tuesday's CPI data expected to impact these expectations.

U.S. stock index futures indicated a 0.2-0.4% increase, while the STOXX 600 in Europe rose by 0.4%. A majority of economists expect rate cuts to begin in June, with fewer cuts expected overall this year.
In the currency market, the yen weakened against the dollar following a cautious assessment of Japan's economy by Bank of Japan Governor Kazuo Ueda. This tempered expectations of any immediate policy shifts, boosting the dollar against the yen.

Sterling eased against the dollar amid cooling UK wage growth, potentially increasing pressure on the Bank of England to consider rate cuts.
Chinese stocks, particularly in the tech sector, saw gains, with Hong Kong's Hang Seng Index rising by 3.1%. Gold prices dipped slightly but remained close to record highs.