Australia

Australian shares are set to open higher, after another bullish session on Wall Street.

ASX futures were up 0.5% or 36 points as of 8:00am on Wednesday, suggesting a higher open.

US stock indexes traded at or near records Tuesday after traders took in one inflation report and looked ahead to another that will offer a much-anticipated look at how consumer prices have been faring.

The Nasdaq Composite was up 0.8%, the S&P 500 rose 0.5%, while the Dow Jones Industrial Average was 0.3% higher.

In commodity markets, Brent crude oil was down 0.7% to US$82.79 a barrel, while gold was up 0.9% at US$2,358.12.

In local bond markets, the yield on Australian 2 Year government bonds was down at 4.01% while the 10 Year yield was unchanged at 4.32%. US Treasury notes were down, with the 2 Year yield at 4.81% and the 10 Year yield at 4.44%.

The Australian dollar was 66.24 US cents, up from its previous close of 66.07. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, was down at 99.67.

Asia

Chinese shares were mixed at close as gains in auto stocks offset losses in the energy sector. Investors are watching Tencent and Alibaba's earnings due later. Analysts see the likelihood of PBOC cutting the reserve requirement ratio for banks as soon as this month following negative credit growth in April and details of the super ultra-long bond sale. Great Wall Motor led the gains, rising 8.3% and Chongqing Changan Automobile added 1.4%. Energy stocks led the losses with Ming Yang Smart Energy down 3.0% and China Coal Energy losing 2.4%. The benchmark Shanghai Composite Index closed 0.1% lower at 3145.77 while the Shenzhen Composite Index rose 0.35% and the ChiNext Price Index lost 0.3%.

Hong Kong's Hang Seng Index edged 0.2% lower to close at 19073.71, erasing earlier gains. Most Chinese technology firms are going to release their quarterly results this week, with investors keeping an eye on Tencent results due later today, Maybank Investment Bank Securities (Hong Kong) head of retail research Sonija Li says in a note. Galaxy Entertainment fell 3.9%, although its revenue surged in the first quarter. Other decliners included Xinyi Glass Holdings, which fell 9.6%, and Hang Lung Properties, which shed 3.6%. Meanwhile,ESR Group rose 26% after it said it received a privatization proposal. Among advancers, WuXi AppTec added 3.8% and Xiaomi Corp. was up 3.2%.

The Nikkei Stock Average rose 0.5% to close at 38356.06 in possible position adjustment ahead of U.S. PPI data due out today. A PPI reading in line, or ideally below expectations, should provide a sigh of relief to Fed doves, said Ipek Ozkardeskaya, senior analyst at Swissquote Bank, in an email. Among best performers on Japan's benchmark index, Suzuki Motor rose 6.35% after FY net profit climbed 21%, and Suntory Beverage & Food climbed 6.9% after 1Q net profit jumped 39% on year. USD/JPY was at 156.39, compared with 155.85 as of Monday's Tokyo stock market close. The JGB 10-year yield was up 2.5 bps at 0.960%.

Indian shares ended higher amid eased concerns over domestic inflation. India's April inflation eased to 4.8% on year, driven by softer domestic fuel prices, while food inflation remained elevated, HSBC economists said in a note. Auto and steel stocks led gains. Mahindra & Mahindra rose 3.8% and Tata Motors gained 0.5%. JSW Steel added 2.4% and Tata Steel ended 0.7% higher. Bank stocks gave up gains from the previous session, with Axis Bank down 0.9% and ICICI Bank dropping 0.6%. The benchmark Sensex ended 0.45% higher at 73104.61.

Europe

Stocks in the U.K. rose Tuesday, as the FTSE 100 Index gained 0.2% to 8428.13.

Among large companies, Ocado Group PLC was the biggest gainer during the session, surging 8.1% to GBP369.80, and Zegona Communications PLC surged 6.9% to GBP233.00. Vodafone Group PLC rounded out the top three movers on Tuesday, as shares gained 4.7% to GBP73.28.

Burford Capital Ltd. posted the largest decline, falling 4.5% to GBP1,123.00, followed by shares of International Distribution Services PLC, which fell 4.4% to GBP271.40. Shares of Anglo American PLC fell 3.2% to GBP2,619.50.

In Europe, the STOXX Europe 600 Index added 0.2% to 521.65, Germany's DAX slipped 0.1% to 18,716.42 and France's CAC 40 rose 0.2% to 8,225.80.

North America

US stock indexes traded at or near records Tuesday after traders took in one inflation report and looked ahead to another that will offer a much-anticipated look at how consumer prices have been faring.

A report on wholesale prices Tuesday offered mixed signals for investors trying to assess the Federal Reserve's path forward in its fight against inflation. The producer-price index rose more than economists expected in April, but was revised lower for March.

Traders saw little reason to pull back on their recent bullishness and sent the Nasdaq Composite up 0.8% to close at a record, its first since April 11. The S&P 500 rose 0.5% to just shy of a record, while the Dow Jones Industrial Average was 0.3% higher.

Investors could be forced to reassess their optimism after Wednesday's release of the consumer-price index. A surprisingly high reading for April would extend a streak of three reports that have come in firmer than expected. Economists polled by The Wall Street Journal are forecasting a 3.4% year-over-year rise in inflation.

"A hot CPI print would create volatility as expectations for interest-rate cuts are lowered," said Richard Ratner, investment adviser at Bel Air Investment Advisors.

Fed chair Jerome Powell said Tuesday that the central bank is maintaining a wait-and-see stance on whether and when it can lower interest rates.

"We're just going to have to see where the inflation data fall out," Powell said during a moderated discussion in Amsterdam Tuesday, adding that he expected inflation to continue heading lower.

After pulling back in April, stock indexes have climbed this month on renewed optimism that the Fed will be able to cut interest rates in 2024. For the year, the S&P 500 is up 10%.

The benchmark 10-year Treasury yield settled lower at 4.444%.

Surveys out this week underscored just how bullish investors have grown in recent weeks. Investment managers' risk appetite has jumped to the highest level since late 2021, according to the S&P Global Investment Manager Index. Bank of America's global fund manager survey out Tuesday was the most bullish in two-and-a-half years, "driven by optimism on rate cuts."

Trading in meme stocks GameStop and AMC Entertainment on Tuesday resembled the frothiest days of the pandemic-era trading craze in 2021, after social-media posts prompted a resurgence in interest. GameStop shares closed 60% higher, while AMC was up 32%. They were among the most heavily traded shares, and GameStop trading was halted several times for volatility.

In earnings, Chinese e-commerce conglomerate Alibaba said its profit sank last quarter, even as revenue rose. Its American depositary receipts fell around 7%.

Walmart shares fell 0.9% after The Wall Street Journal reported the retailer, set to report earnings Thursday, is cutting hundreds of corporate jobs.