Global Stocks Steady Amidst Anticipated Rate Cuts and Inflation Data

Global stock markets steadied as investors anticipated critical U.S. inflation data, expected to influence the Federal Reserve's decision on rate cuts. U.S. stock futures remained unstirred, while the S&P 500 hovered near its record high. Investors were cautious due to increased chances of a rate cut.

Global stock markets remained steady on Wednesday as investors anticipated crucial U.S. inflation data. The data is likely to determine the Federal Reserve's path for potential rate cuts. European shares reversed earlier losses, partly impacted by downbeat corporate results, and hovered near recent highs reached earlier this week.

U.S. stock futures showed little movement ahead of the inflation numbers, due for release at 1330 GMT. Although the S&P 500 dipped by 0.3% on Tuesday, it remained just shy of a record high. The market remains cautious, particularly as there is an 85% probability of a rate cut from the Federal Reserve next week, creating the potential for investor disappointment.

In foreign exchange markets, currencies experienced minimal fluctuations, except for sterling, which strengthened against the euro, aided by political uncertainty in Europe and a hawkish Bank of England. Commodity markets also saw developments, with Arabica coffee prices reaching a record high, driven by drought concerns in Brazil.

(With inputs from agencies.)