European equities follow Asia higher

On Tuesday U.S. stock futures climbed and the dollar strengthened ahead of a key inflation report that may affect the outlook for Federal Reserve policy tightening. European equities drifted higher after a mixed session in Asia and oil reversed a drop.

As futures pointed to a gain for the S&P 500 Index, most of Europe’s main gauges were in the green. Earlier, Japanese stocks fluctuated before closing higher, while Hong Kong and Chinese shares slipped. The yen slumped the most in three weeks as investors digested the political fallout from a scandal embroiling Japanese Finance Minister Taro Aso. The Treasury 10-year yield inched up to 2.88 percent after Monday’s auction broadly met expectations. Gold retreated.

All eyes will be on the U.S. inflation data as traders try to secondguess the path of monetary tightening in the world’s biggest economy. A figure that misses or meets estimates is likely to reaffirm the case for just three rate hikes this year and give the green light to fresh appetite for risk assets.

Elsewhere, emerging-market equities gained for a fourth day. West Texas crude reversed a decline as traders weighed strong demand and swelling supplies. Bitcoin was fractionally higher, holding above $9,000.

The Stoxx Europe 600 Index climbed 0.1 percent as of 10:28 a.m. London time, hitting the highest in two weeks with its seventh consecutive advance. Futures on the S&P 500 Index gained 0.2 percent to the highest in almost six weeks. The MSCI Asia Pacific Index increased 0.1 percent to the highest in two weeks. The U.K.’s FTSE 100 Index fell less than 0.05 percent. The MSCI Emerging Market Index jumped 0.3 percent to the highest in more than five weeks.

The euro decreased less than 0.05 percent to $1.2331. The British pound dipped 0.1 percent to $1.3898. The Japanese yen declined 0.7 percent to 107.15 per dollar, the weakest in two weeks on the largest drop in three weeks. This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.