Stocks, futures rise as focus switches to US CPI: Markets wrap

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Spot gold rose 0.3% to $1 879.44 an ounce.

Shares advanced before a report that’s expected to show a slowing in US inflation, which will help shape the outlook for the Federal Reserve’s next steps. A move by China’s sovereign wealth fund to buy shares of the country’s largest banks fueled further optimism.

Traders’ focus is now turning to Thursday’s US consumer price data, which economists are forecasting to show a further easing in inflation. Fed minutes published Wednesday showed officials agreed last month policy should remain restrictive for some time, while noting the risks of overtightening now had to be balanced against keeping inflation on a downward path.

“The less hawkish turn that we’ve seen from the Fed is in part to try and reduce the volatility that we’ve seen in rates markets and to try and bring expectations down to a more reasonable level,” Mehvish Ayub, senior investment strategist at State Street Global Advisors, said on Bloomberg Television.

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