Inflation Forecasts and Earnings Help Wall Street Open Higher; Asia Mixed, Europe Gains

Asia-Pacific Shares Mixed as Investors Await US Inflation Data

Asian stocks were mixed on Tuesday as investors awaited the release of key US inflation data later in the day. The data will give clues on the Federal Reserve's interest rate hiking path.

China's Shanghai Composite Index gained 0.35%, while the CSI 300 index of the largest listed companies in Shanghai and Shenzhen rose 0.29%. Hong Kong's Hang Seng Index slipped 0.15%.

Japan's Nikkei 225 index edged up 0.06%, while the broader Topix index inched lower by 0.03%. South Korea's Kospi index fell 0.41%.

European Stocks Rise as Earnings Season Continues

European stocks opened higher on Tuesday, lifted by positive earnings reports from companies such as Unilever and Heineken. The pan-European STOXX 600 index gained 0.3%.

Unilever shares rose 3.3% after the consumer goods giant reported better-than-expected third-quarter sales and raised its full-year outlook. Heineken shares climbed 2.1% after the brewer reported a strong third quarter and said it expects to deliver double-digit operating profit growth in 2022.

Other notable gainers included French automaker Renault, which jumped 4.1% after raising its full-year profit forecast, and German software company SAP, which rose 2.2% after reporting strong third-quarter results.

Wall Street Futures Rise Ahead of Inflation Data

US stock futures pointed to a higher open on Tuesday as investors digested a slew of earnings reports and looked ahead to the release of key inflation data.

Dow Jones Industrial Average futures rose 0.3%, S&P 500 futures gained 0.3%, and Nasdaq 100 futures were up 0.4%.

On the earnings front, Johnson & Johnson shares rose 1.4% premarket after the healthcare giant reported better-than-expected third-quarter results. United Airlines shares jumped 4.6% after the airline reported a smaller-than-expected quarterly loss.

Inflation in Focus as Investors Eye Fed's Rate Hike Path

The key event of the day will be the release of the US Consumer Price Index (CPI) for September. The CPI is a measure of inflation that tracks the prices of a basket of goods and services purchased by consumers.

Economists expect the CPI to have risen by 8.1% year-over-year in September, a slight moderation from the 8.3% increase in August.

The CPI report will be closely watched by investors for clues on the Federal Reserve's interest rate hiking path. The Fed has already raised rates five times this year in an effort to tame inflation, and it is expected to continue raising rates until inflation falls back to its target of 2%.