Market Moves: Stocks Rise Amid Bond Relief and Inflation Watch

U.S. and European stocks edged up as bond sell-offs eased, with investors eyeing upcoming U.S. inflation data and Trump's inauguration. The U.S. producer price index rose less than expected. Market focus remains on inflation data, bond yields, and potential tariffs under Trump's administration.

In a mixed start to the week for global markets, both U.S. and European stocks saw gains as the ongoing sell-off in bonds took a breather. This comes as investors eagerly await the release of U.S. consumer price inflation data and anticipate the inauguration of Donald Trump as President next week.

Key indices showed signs of optimism in early trading. The S&P 500 rose by 0.38%, reaching 5,858.22, while the Nasdaq Composite climbed by 0.55%. Meanwhile, data from Tuesday indicated that the U.S. producer price index increased by 0.2% month-on-month in December, below expectations, setting the tone for jittery markets.

Analysts have highlighted the significant focus on U.S. consumer price data, which is expected to show stable monthly inflation but a year-over-year increase. This data is crucial amidst concerns over bond yields rising due to strong economic data and possible tariff hikes under Trump's economic policies, which may influence the global equities landscape.

(With inputs from agencies.)