European and US markets falter after US inflation figures hotly contested

Across the pond, Monday was a mixed day of trading. The S&P 500 (^GSPC) ended a week-long rally, but was still trading above the symbolic 5,000 mark. The Nasdaq (^IXIC) also ended the day down 0.3% after a similar streak of luck.

The Dow (^DJI) bucked the trend, rising 0.3% to a record close on the release of a series of corporate earnings reports.

Today, markets will use the consumer price index for guidance.

Here is The opinion of our US desk:

The inflation report, due out at 8:30 a.m. Eastern Time, is expected to show headline inflation of 2.9 percent, a sharp slowdown from the 3.4 percent annual increase in December, according to Bloomberg estimates.

If these estimates prove correct, this would be the lowest annual inflation rate in about three years and the first time since March 2021 that this figure would be below three percent.

Compared to the previous month, consumer prices are expected to rise by 0.2 percent, in line with the recently revised monthly increase in December.

On a “core basis,” which excludes the more volatile costs of food and gasoline, prices are expected to have risen 3.7 percent in January from a year earlier – a slowdown from the 3.9 percent annual increase in December, according to data compiled by Bloomberg.

Monthly core prices are expected to have increased by 0.3%, unchanged from the previous month.