Morning Bid: Market mood downbeat ahead of raft of data

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A look at the day ahead in European and global markets from Anshuman Daga

The overarching downbeat mood among investors shows no signs of improving as markets become increasingly wary of a further rise in borrowing costs.Although U.S. markets took a breather and rose on Monday, they ended well below the day's highs and Asian markets were back in the red on Tuesday after gaining in early trade.

Tuesday's U.S. consumer confidence data will be especially scrutinised for households' views on economic prospects and inflation expectations. Economists polled by Reuters expect a median reading of 109.5 on the index, which unexpectedly fell in January.Despite sharp increases in interest rates by major central banks, predictions of economies worldwide falling into recession continue to miss the mark.

While inflation has eased a bit, providing some support to markets, a barrage of economic data suggests that inflation is stickier than expected, reinforcing the "higher-for-longer" rates view.

 

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