Stocks in the UK and Europe are edging higher this morning ahead of US inflation data. There has been increasing pressure recently on the Fed to tighten policy with rising prices and strong jobs data but the consensus forecast is for today’s July CPI reading to indicate an easing of prices. Investors will be keenly watching; a surprise to the upside could upset the market.

In the US on Tuesday, the government’s $1.2 trillion infrastructure bill won Senate approval. This will be a major victory for Joe Biden if it wins final approval in Congress. Biden said “This bill is going to help make a historic recovery a long-term boom”.

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