Markets drop as US inflation comes into view

Asian markets dipped yesterday as investors look ahead to the release this week of key US inflation data that could provide a guide for the Federal Reserve’s plans for interest rates going into the new year.

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With Wall Street seeing little action at the back of last week owing to the Thanksgiving break, traders had few catalysts to drive action, though analysts were upbeat about the end of the year.

The retreat in equities comes after a recent run-up across world markets fuelled by bets the US central bank has finished lifting interest rates as inflation comes down and the jobs market comes off the boil.

The main focus this week is the release Thursday of the personal consumption expenditures (PCE) price index, the Fed’s preferred gauge of inflation.