Stock Market Today: Global Shares Rise as U.S. Markets Pause for M.L.K. Jr. Day

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Wall Street trading will return in force Tuesday.

Angela Weiss/AFP via Getty Images

Global stocks moved slightly Monday in what is expected to be a quiet trading session, with U.S. markets closed in observance of the Martin Luther King Jr. Day holiday.

The pan-European

Stoxx 600
index was 0.6% higher and Tokyo’s

Nikkei 225
ended the day 0.7% into the green.

The New York Stock Exchange and Nasdaq are closed Monday for the holiday that honors King’s Jan. 15 birthday, with U.S. bond markets similarly shut.

CME Group, which overseas commodities markets including Nymex-traded crude and Comex-traded gold, said there will be no regular trading or settlements Monday.

Worldwide, investors continue to fret over tighter monetary policy and inflation. 

Signals from the Federal Reserve show its monetary policy group—the Federal Open Market Committee (FOMC)—on track for earlier, faster rate increases and an eventual reduction of its balance sheet. Markets are pricing in three interest rate increases from the central bank this year, with the first in March.

Inflation clouds the picture. Recent readings of historic inflation, including the highest annual increase in the consumer-price index (CPI) since 1982, supports the notion that the Fed will tighten policy. But the data also shows inflation nearing its peak; slowing inflation would act as a moderating force on hawkishness from the Fed.

“It’s becoming increasingly clear that 2022 is going to be a year where it’s all about the battle between the Fed and financial conditions,” said Jim Reid, a strategist at Deutsche Bank. “Markets will…

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