Stocks Recover Ahead of Inflation Data

Stocks and commodities rebounded Tuesday while bond markets stabilized ahead of closely watched inflation data.

The Stoxx Europe 600 was up 0.9% in the early minutes of trading, led by miners and oil and gas companies. Brent crude oil rose 0.7% at $51.89 a barrel, while copper, silver, and gold all bounced, supporting the basic resources sector.

Dollar-denominated commodities got a lift as the greenback pulled back from its highest level since March. The WSJ Dollar Index extended declines early Tuesday and was last down 0.2%, while the pound rose 0.4% against the dollar to $1.2235.

Investors were looking ahead to consumer price index reports from the U.K. and U.S. due later Tuesday, which are both expected to show a pickup.

Futures pointed to a 0.4% opening gain for the S&P 500, after the index closed at its lowest level in over a month. Shares of Netflix Inc. jumped over 20% in after-hours trading after posting a surge in new subscribers, supporting sentiment around U.S. stocks.

Shares in Asia also advanced, as markets in Hong Kong and Shanghai more than reversed Monday's losses and Japan's Nikkei Stock Average inched up 0.4% as investors slightly dialed back expectations for higher U.S. interest rates.

A number of Federal Reserve officials are building a case to skip over the November policy meeting and raise short-term rates again in December, aligning the central bank with financial market expectations.

Michael S. Derby contributed to this article.

Write to Riva Gold at [e-mail]

(END) Dow Jones Newswires

October 18, 2016 04:15 ET (08:15 GMT)

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