Stocks edge up as Warsh says inflation expectations fall; oil slips

By Rodrigo Campos and Danilo Masoni

NEW YORK/MILAN, July 1 (Reuters) - A gauge of banal markets astir the satellite edged up connected Wednesday arsenic the U.S. cardinal slope caput said ostentation expectations person fallen, portion crude lipid prices were ‌down arsenic optimism implicit U.S.-Iran talks eased proviso concerns.

Traders besides watched for imaginable Japanese involution successful the currency marketplace aft ‌the yen touched caller 40-year lows against the dollar.

Speaking connected a sheet of cardinal bankers successful Sintra, Portugal, Federal Reserve seat Kevin Warsh said ostentation expectations and ostentation ​risks person travel down successful caller weeks. He said his chap U.S. policymakers volition determine whether to rise involvement rates erstwhile they statesman their adjacent meeting, keeping to his connection connected not giving guardant guidance.

His comments weighed connected the dollar, which has been underpinned by rising expectations of Fed complaint hikes this year, arsenic ostentation runs good supra the cardinal bank's 2% yearly target. Still, galore analysts judge the ostentation representation volition ‌improve successful the months ahead.

"Nothing that we spot ⁠suggests that immoderate imbalance either connected the enactment broadside oregon the ostentation broadside is increasing rapidly," said Steve Englander, caput of planetary G10 FX probe and North America macro strategy astatine Standard Chartered Bank's New York ⁠branch.

"You tin spend to hold and spot however these longer-term technological trends play out," Englander added. "What we bash spot is that portion labour costs are very, precise soft, and yet that's what the Fed controls."

The dollar index, which measures the greenback against a handbasket of currencies including the yen and ​the ​euro, roseate 0.13% to 101.36, with the euro down 0.35% astatine $1.1381. Against the Japanese ​yen, the dollar past weakened 0.07% to 162.43.

Futures connote ‌no determination from the Fed successful its gathering precocious this month, portion a hike successful September is priced in.

In precocious greeting trading connected Wednesday successful New York, the Dow Jones Industrial Average roseate 239.04 points, oregon 0.46%, to 52,558.24, the S&P 500 roseate 15.04 points, oregon 0.20%, to 7,514.40 and the Nasdaq Composite fell 34.22 points, oregon 0.13%, to 26,179.50.

MSCI's gauge of stocks crossed the globe roseate 0.61 point, oregon 0.05%, to 1,121.07, and the pan-European STOXX 600 scale fell 0.31%, portion Europe's wide FTSEurofirst 300 scale fell 10.51 points, oregon 0.41%. Emerging ‌market stocks roseate 0.82 point, oregon 0.05%, to 1,723.71.

In Asia, Japan's Nikkei gained ​0.6% aft surging 37% past quarter, with beardown tech request lifting sentiment among ​big manufacturers to an eight-year high. South Korea's main scale fell ​about 2%, pursuing a 68% rally past 4th driven by AI-fuelled spot demand.