LONDON—Stocks and bonds steadied on Wednesday, while the dollar edged lower ahead of U.S. inflation data that could give clues to the Federal Reserve’s appetite for more aggressive rate rises.
The Consumer Price Index (CPI) report will be released at 1230 GMT, with markets watching for signs that inflation eased in July despite unexpectedly strong U.S. jobs numbers last week.
The market is pricing in a 69.5 percent chance of a 75 basis point rate increase at the Fed’s next meeting.
Economists polled by Reuters expect the CPI to show year-on-year headline inflation of 8.7 percent, far above the Fed’s target of 2 percent but down from last month’s red-hot 9.1 percent….