GLOBAL MARKETS-Stocks, dollar inch higher as investors await CPI data

* U.S. stocks inch up early * U.S. dollar edges higher * 10-year Treasury yields near flat (Updates to 1045 a.m. ET, changes dateline, previous LONDON) By Caroline Valetkevitch NEW YORK, Feb 12 (Reuters) - Global stock indexes and the U.S. dollar edged higher on Monday ahead of this week's U.S. consumer price index report, which could provide clues on when the Federal Reserve is likely to begin cutting interest rates. The S&P 500 hit a fresh intrady record high, while an MSCI world stock index touched its highest since January 2022. Last week it finished above 5,000 points for the first time ever. The January consumer price index report is due Tuesday, while the U.S. producer prices report is due later in the week. Investors are also eager to see Thursday's U.S. retail sales report for January. Expectations of a Fed rate cut at its next meeting have fallen as some recent data has suggested the economy remains robust. Markets are pricing in an 84.5% chance of rates remaining unchanged in March. Also, the odds for at least a 25-basis-point rate reduction in May have dropped to 61%, from over 95% at the start of 2024, as per the CME FedWatch Tool. "Soft CPI and soft retail sales should help boost the Fed's confidence that inflation is coming back to its target," said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York. The Dow Jones Industrial Average .DJI rose 48.22 points, or 0.12%, to 38,720.68, the S&P 500 .SPX gained 7.27 points, or 0.14%, to 5,033.88 and the Nasdaq Composite .IXIC gained 50.07 points, or 0.31%, to 16,040.74. The MSCI world equity index .MIWD00000PUS , which tracks shares in 49 nations, gained 0.15%, while European stocks .STOXX were up 0.5%. Markets in China, Hong Kong, Japan, South Korea, Singapore, Taiwan, Vietnam and Malaysia were closed for holidays. Mainland China's financial markets are closed for the Lunar New Year holiday and will resume trade on Monday, Feb. 19. Hong Kong trade will resume on Feb. 14. Investors have also reduced their expectations for rate cuts by the European Central Bank, after two policymakers said last week that the ECB needs more evidence that inflation is easing before it can cut rates. The dollar index .DXY , which tracks the greenback against a basket of six currencies, gained 0.14 points, or 0.13%, to 104.25. The dollar JPY= was up 0.1% at 149.45 against the yen, while the euro EUR= was down 0.2% against the dollar. The euro fell from a 10-day high touched in early trading. A reading of the euro zone's fourth quarter economic growth could give fresh direction. The yield on benchmark 10-year Treasury notes US10YT=RR rose to 4.191% compared with its U.S. close of 4.187% on Friday. Oil prices eased as investors took profits after recent strong gains. U.S. crude CLc1 dipped 0.05% to $76.8 a barrel. Brent crude LCOc1 fell to $81.91 per barrel. Spot gold prices XAU= fell 0.46% to $2,014.89 an ounce. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates http://tmsnrt.rs/2egbfVh Global asset performance http://tmsnrt.rs/2yaDPgn ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Herbert Lash in New York; and Elizabeth Howcroft in London, editing by Ed Osmond, William Maclean) (([email protected])) ((https://www.reuters.com/markets/ For Reuters Live Markets blog on European and UK stock markets, please click on: LIVE/ ))