There was renewed caution during the Asia-Pacific trading session after the recent rally in stock markets as investors await Thursday’s key US CPI inflation data. The Nikkei is higher as it plays catch-up after reopening from a public holiday in Japan. Comments from US Fed officials added to the more cautious mood. Both the Fed’s Daly and Bostic said that they expect policy rates to continue to increase. In the UK, Bank of England Chief Economist Pill yesterday noted signs that the labour market is starting to turn but he also said that inflation could prove to be more persistent. His speech suggests that policy ... (full story)