U.S. and European stocks edged higher on Wednesday as investors express optimism due to China’s economic reopening as well as impending U.S. consumer price data to be released on Thursday. Should this data align with forecasts, this could strengthen the case for loosening the Federal Reserve’s strict interest rate policy.
Contracts on the S&P 500 and Nasdaq Composite gained 0.3% each, while Dow Jones Industrial Average futures gained 0.2%. The Stoxx Europe 600 advanced by 0.6%. News of China’s reversal of its strict Covid-induced health regulations helped the MSCI World Index rise by 0.2%.
Airline stocks slipped marginally during early trading after air travel was disrupted by the failure of a key pilot notification system operated by the Federal Aviation Administration. American Airlines Group Inc. lost 1.9% while United Airlines Holdings Inc. fell 0.5%.
Federal Reserve Chair Jerome Powell gave little away during his speech on Tuesday, making no comments regarding the central bank’s monetary policy going forward. Traders have viewed his silence as a move in favor of slowing interest rates.