Global Markets React to US Inflation Data: Stocks Rise, Dollar Slips

Asian shares rose while the dollar slipped to a two-month low as investors awaited a crucial U.S. inflation report that will help determine the future of the Federal Reserve's rate hiking policy. The MSCI's broadest index of Asia-Pacific shares outside Japan rose for the third consecutive day, and European futures indicated a continuation of the risk-on rally. Investors are focused on the inflation report, with expectations of a 3.1% rise in the consumer price index for June. The markets remain uncertain about further rate hikes after this month's expected 25-basis-point increase. The Bank of Canada's policy decision and second-quarter earnings from Wall Street banks are also being closely watched.