Market indexes on Wall Street and in Europe turned lower after an inflation report signaled that policymakers may delay the expected rate cut as early as June. Large companies in Japan agreed to record high wage gains, lifting hopes that the Bank of Japan may be ready to end the negative interest rate regime.
With inflation cooling around the world, market indexes are struggling to hold near-record highs amid stretched valuations and rate uncertainties. Consumers are facing a sharp jump in housing costs and the cost of living crisis, while central banks are still lagging to contain well-anchored inflation.
U.S. consumer price inflation stayed above 3% after housing costs continued to climb at an elevated pace, and a steady decline in food and energy price inflation drove overall German inflation lower in February. Chinese companies expand their stock buyback programs to take advantage of the persistent market slump.