BEIJING (AP) — European stock markets opened higher while Asia fell on Wednesday ahead of the release of U.S. inflation data that traders say will show upward pressure on prices is still too strong for the Federal Reserve to dampen interest rate hikes.

London, Frankfurt and Wall Street futures gained. Shanghai and Tokyo fell. Oil prices fell slightly.

Wednesday’s data is expected to show that headline inflation in the United States in July fell from the previous month…

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BEIJING (AP) — European stock markets opened higher while Asia fell on Wednesday ahead of the release of U.S. inflation data that traders say will show upward pressure on prices is still too strong for the Federal Reserve to dampen interest rate hikes.

London, Frankfurt and Wall Street futures gained. Shanghai and Tokyo fell. Oil prices fell slightly.

Data on Wednesday is expected to show that headline inflation in the United States in July fell from the previous month’s four-decade high of 9.1%. But a FactSet survey found traders expect core inflation, which is wiping out volatile food and energy, leaving rents and other costs, to rise slightly. This is despite other data showing a cooling in economic activity.

Anything above 8% is “still too high” for the Fed, Mizuho Bank’s Tan Boon Heng said in a report.

“The fight against inflation is far from over,” Tan said.

In early trading, the FTSE 100 in London gained less than 0.1% to 7,489.23 and the DAX in Frankfurt advanced 0.3% to 13,575.20. The CAC 40 in Paris added less than 0.1% to 6,495.28.

On Wall Street, futures on the benchmark S&P 500 and the Dow Jones Industrial Average rose 0.3%.

On Tuesday, the S&P fell 0.4% as traders waited for more evidence of how aggressively the Fed might pursue further rate hikes. The Dow slipped 0.2% and the Nasdaq lost 1.2%.

The Fed has raised rates four times this year, including twice by 0.75 percentage points, triple its usual margin. Investors expect another 0.75 percentage point rise in September after last week’s data showed hiring was stronger than expected.

Investors fear efforts by the Fed and other central banks in Europe and Asia to rein in inflation, which has been at multi-decade highs, could derail global economic growth.

Fed officials acknowledge there is a danger that the US economy could tip into recession, but some cite the strength of the labor market as evidence that it can tolerate more rate hikes.

In Asia, the Shanghai Composite Index lost 0.5% to 3,230.02 and the Nikkei 225 in Tokyo fell 0.7% to 27,819.33. The Hang Seng in Hong Kong plunged 2% to 19,610.84.

Seoul’s Kospi fell 0.9% to 2,480.88 and Sydney’s S&P-ASX 200 fell 0.5% to 6,992.70.

The Indian Sensex lost less than 0.1% to 58,826.80. Markets in New Zealand and Southeast Asia declined.

Markets were also rocked by Russia’s war on Ukraine, which has caused prices for oil, wheat and other commodities to soar, and uncertainty over China’s anti-virus measures that have disrupted manufacturing and trade.

In energy markets, benchmark U.S. crude fell 61 cents to $89.89 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 26 cents to $90.50 on Tuesday. Brent crude, the price basis for international trade, fell 59 cents to $95.72 a barrel in London. It was down 34 cents the previous session at $96.31.

The dollar fell to 134.95 yen from 135.18 yen on Tuesday. The euro fell from $1.0205 to $1.0222.

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