Premarket: Global stocks tick higher ahead of Fed minutes and U.S. inflation

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Minutes from the latest Federal Reserve meeting are due later Wednesday afternoon

Global stocks edged higher on Wednesday, with investors cheered by Chinese stimulus hopes and a drop in bond yields, while the U.S. dollar held steady before the release of the latest Federal Reserve meeting minutes and U.S.

Europe’s continent-wide STOXX 600 index was 0.12% higher in early trading after surging 1.96% in the previous session. French luxury company LVMH fell 6.3% after it posted results which showed its sales growth slowed. Atlanta Fed President Raphael Bostic was applauded when he told a room full of bankers in Nashville on Tuesday: “I actually don’t think we need to increase rates anymore.”“I’m expecting the market to remain in wait-and-see mode throughout the day because we have the Fed minutes tonight.... and U.S. inflation tomorrow,” said Florian Ielpo, head of macro at Lombard Odier Investment Managers.

Bond yields tumbled again on Wednesday, as prices rallied. The yield on the global benchmark 10-year U.S. Treasury note was last down 8 basis points at 4.571%, sharply below last week’s peak of 4.887%, which was the highest level since 2007. “This higher real rate situation carries a message and that is that financial conditions are tighter, and that means eventually the economy will slow down.”

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