Besides, the rupee-dollar trend and movement of global oil benchmark Brent crude will also be crucial in dictating terms in the market, experts added.
Data showed consumer spending increased solidly in October, suggesting the US economy maintained its strong pace of growth, but progress on lowering inflation appeared to have stalled.
Gold prices fell slightly on Friday but are poised for a second consecutive monthly gain, up about 3% this month, as traders await U.S. inflation data and Fed rate cut signals.
Shares of Apple recovered 2.1% to hit a record high after declining in the previous session following its long-awaited AI strategy, presented at a developer conference
It was a volatile session, with the U.S. dollar initially jumping after the data, then falling and eventually rising after the market digested the report. The dollar index was last up 0.3% at 103.06.
Global stock indexes mostly climbed, and the U.S. dollar fell to a near five-month low on Friday before the long holiday weekend. Cooler-than-expected U.S. inflation data reinforced the belief that the Federal Reserve might cut borrowing costs in the new year.
Traders now await a slew of U.S. economic data, including the November core personal consumption expenditure (PCE) index report on Friday.
In this episode of Market Minutes, Shailaja Mohapatra talks about oil prices spiking 2%, August CPI inflation number, global market setup and a slew of stocks in news. Catch Radhika Rao of DBS Research Group in Voice of the Day segment. Market Minutes is a morning podcast that puts the spotlight on hot stocks, keys data points and developing trends.
Inflation data, global trends and foreign fund trading activity would guide equity market movement in a holiday-shortened week.
Spot gold was up 0.7% to $1,937.70 per ounce at 1011 GMT, set for a third consecutive session of gains. U.S. gold futures climbed 0.7% to $1,943.60.
“Retail inflation is just about near the RBI target of four percent while manufacturing is clearly showing an uptick as per the latest data. The Indian economy is on a steady move even in the midst of global challenges,” said ASSOCHAM Secretary General Deepak Sood.
Spot gold was up 0.3% to $2,022.76 per ounce by 0915 GMT. U.S. gold futures rose 0.3% to $2,029.80.
Spot gold was 0.2% higher at $1,992.04 per ounce by 12:30 p.m. EDT (1630 GMT), up about 1.2% for the month. U.S. gold futures rose 0.1% to $2,001.10.
The consumer price index increased 0.5% last month after gaining 0.1% in December, data showed.
The data showed that prices unexpectedly fell for the first time in more than 2-1/2 years in December.
Crude oil prices shrugged off early losses to move higher, while copper prices held near 6-1/2 month highs on optimism over economic reopening of top consumer China.
Here are the key economic, leadership and other events in India and around the world to get you started for next week.
Prices rose 0.4 percent in September compared to August, twice the 0.2 percent projected by analysts even as the annual rate slowed slightly to 8.2 percent from 8.3 percent.
The S&P 500 sank 2.3% in early trading Tuesday, threatening to snap a four-day winning streak; bond prices also fell sharply, sending their yields higher
Moreover, foreign fund trading activity, movement of rupee and crude oil prices would be the other key monitarables for the markets, they added.
The Labor Department's report showed consumer prices shot up 7.9% year-on-year, the sharpest annual spike in 40 years.
Food prices, which is a gauge to measure changes in kitchen budgets, stood at 2.33 percent in July, compared to the 2.37 percent in the previous month.
Stock market this week will be guided by quarterly earnings from blue-chip firms and investor expectations from the forthcoming Union Budget, says experts.
Forex - Dollar turns lower after weak U.S retail, inflation data