Despite most investors maintaining a cautious stance ahead of what is bound to be an action-packed Wednesday with the release of fresh US inflation data, US stocks nudged higher in subdued trading. There's a palpable sense of nervousness among investors as they exercise a modicum of restraint, concerned about the possibility of hotter-than-expected inflation figures.
Despite experiencing the most significant one-day decline in Treasury yields in over a month and a significant drop in oil prices, risk markets only bounced slightly, suggesting buyer fatigue may be setting in; let’s hope it doesn’t turn into buyer's remorse post-inflation print. Subdued dollar buying and a slightly improved risk sentiment can be attributed partly to softer whispers circulating ahead of Wednesday's crucial inflation release.