Global Markets React to Key Economic Indicators Amid Federal Reserve Speculations

Japan's Nikkei reached a record high on Tuesday, while global investors await Federal Reserve Chair Jerome Powell's statements, anticipating possible rate cuts due to a cooling U.S. labor market. European and U.S. futures showed mixed signals, while the week's key economic event is the U.S. consumer price report on Thursday.

Japan's Nikkei surged to a record high on Tuesday, driven by semiconductor shares, while global investors braced for Federal Reserve Chair Jerome Powell's anticipated remarks. Their focus is on the potential for rate cuts amid signs of cooling in the U.S. labor market.

European markets looked set for a subdued start, with EUROSTOXX 50 futures off 0.3% and the FTSE remaining flat. Meanwhile, S&P 500 and Nasdaq futures climbed, following Wall Street's record-high close on Monday.

As Powell appears before Congress, investor optimism grows that softer U.S. labor market data could spur a rate cut by September. Economist Shane Oliver from AMP in Sydney expressed cautious optimism about Powell's stance, noting that the U.S. economy's data suggests a trend of softening.

(With inputs from agencies.)