Lucy Harley-McKeown
Stocks mixed as attention turns to inflation
European markets were higher on Tuesday and the FTSE was flat, while US markets were mixed in early trade, as eyes turn to the next batch of US inflation data.
The FTSE 100 (^FTSE) finished the day 3.6 points higher — almost flat on the day before. Frankfurt's DAX (^GDAXI) ticked up 0.8% and the CAC (^FCHI) in Paris hovered 0.3% higher.
The pan-European STOXX 600 (^STOXX) was 0.2% higher.
Across the pond, the S&P 500 (^GSPC) was flat, the Dow (^DJI) fell 0.4% and the Nasdaq (^IXIC) was 0.2% in the green by the close in Europe.
Market moves come ahead of a reading of US inflation and US GDP later on in the week — two measures the Federal Reserve will look to when deciding its next moves on the base interest rate.
The PCE index report due Thursday, a key inflation input into the Federal Reserve's rate-setting decisions.
In the meantime, economic updates due on Tuesday cover consumer confidence, the S&P Case-Shiller home price index, and durable goods orders.
Markets in Europe moved following a warning by the Institute for Fiscal Studies (IFS) that the UK government's tax cut plans for the spring budget could be unrealistic when considering national debt.
Maintaining real-terms spending on unprotected services, such as the NHS, would require a cash top-up of £20bn in 2028–29; maintaining it in per-person terms would require a cash top-up of £25bn, the IFS report said. An implied investment spending cut of £20bn "will not help growth," the think tank added.
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