By TOBY STERLING
An invested looks at the stock price monitor at a private securities company Tuesday Nov. 19, 2013 in Shanghai, China. World stocks were muted Tuesday as a string of record highs on Wall Street instilled caution about a possible bubble in stock markets fueled by easy monetary policy. China’s Shanghai Composite Index dropped 0.2 percent to 2,193.13. (AP Photo)
AMSTERDAM (AP) — Markets got a modest lift Wednesday after tame U.S. inflation figures eased investor fears that the U.S. Federal Reserve will feel pressure to reduce its monetary stimulus soon.
U.S. consumer prices fell slightly in October, due to lower energy and housing prices, according to a Labor Department report Wednesday. Over the past 12 months, inflation has been just 1 percent, the smallest increase since late 2009.
“With limited inflation pressure and even perhaps a whiff of deflation, the Fed isn’t likely to feel any urgency to pull in the reins on policy,” said Jim Baird, chief investment officer at Plante Moran Financial Advisors.
Following the inflation figures, stocks in Europe recovered some lost ground while the U.S. opened steadily.
In Europe, the FTSE 100 index of leading British shares was down 0.2 percent at 6,688 while Germany’s DAX was a tad lower at 9,190. The CAC-40 in France was 0.3 percent lower at 4,260.
In the U.S., the Dow Jones industrial average was flat at 15,967 while the broader S&P 500 index rose 0.1 percent to 1,790.
The main focus later will be the publication of the minutes to the Fed’s last policy meeting are published later in the U.S. trading session.
“Investors remain hesitant to enter the markets before tonight’s minutes,” said Max Cohen, a trader at Spreadex.
Earlier, Asian markets generally fell, though Hong Kong’s Hang Seng added 0.2 percent to 23,700.86 and China’s Shanghai Composite reversed losses to gain 0.6 percent to 2,206.61 after the Organization for Economic Cooperation and Development made positive remarks about the Chinese economy.
Seoul’s Kospi was down 0.7 percent to 2,017.24. Australia’s S&P/ASX 200 ceded 0.8 percent to 5,307.70. Japan’s Nikkei 225 stock average shed 0.3 percent to 15,076.08, hurt by a rise in the yen.
Other markets drifted. Among currencies the euro was 0.1 percent lower at $1.3539 while the dollar fell 0.3 percent to 99.87 yen.
In the oil markets, the benchmark New York crude rate was up 45 cents at $93.34 a barrel.
