GLOBAL MARKETS-Stocks fall ahead of US inflation data; geopolitics, Fed in focus

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Stocks rise even with multiple geopolitical risks

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Yen slide helps dollar steady as Fed concerns linger

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Gold rally pauses near $4,600, oil up on Iran troubles

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Earnings season kicks off with big US banks

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US consumer inflation data due later

(Updates prices, adds JPMorgan (JPM) results)

By Amanda Cooper

LONDON, Jan 13 (Reuters) - Global shares dipped on Tuesday and the dollar recovered some lost ground ahead of U.S. inflation data and major bank earnings, while oil prices gained as unrest in Iran fanned fears for supplies. U.S. President Donald Trump's pledge on Monday to impose a 25% tariff ?rate on any country that does business with Iran, along with his attacks on Federal Reserve independence, added to market uncertainty, keeping investors cautious.

Europe's STOXX 600 reversed early gains to trade 0.1% lower on the day. ?The index hit a record high on Monday. U.S. stock index futures also slipped 0.1%, while JPMorgan (JPM) shares were up nearly 1% in choppy premarket trading after ?reporting

fourth-quarter profit

profit that beat analysts' expectations.

WALL OF WORRY

Even with multiple geopolitical flashpoints, such as Iran, Greenland and Venezuela, and ?concern about lofty valuations as equity benchmarks ?from London to Tokyo and Frankfurt hit record highs, investors appear content to push markets higher for now, a dynamic strategists call "climbing the wall of worry".

"The wall of worry has been built anew over ?the last week in so many different ways. And yet, (the market) is just climbing and ?climbing," IG chief market strategist Chris Beauchamp said.

"If people came into 2026 the same way they finished 2025, mainly they're looking for the pullback, they're looking for a reason for the market to correct. At the moment, it feels like they're just running ?the old hits of tariffs and interventions," he said.

A cornerstone of some of ?the current confidence is anticipated ?earnings growth of 8.3% in the fourth quarter, which would mark the 10th straight quarter of expansion, Beauchamp added.

"That's your fuel in the engine," he said.

Traders and investors are waiting for a report on U.S. consumer price inflation for December. Forecasts are for annual core inflation to ?nudge up to 2.7%.

Earnings season kicks off this week with results from the major banks including Bank of New York Mellon (BK), Citigroup (C/PN) and Bank of America (BAC). Earnings calls will no doubt include questions about banks' response to Trump's call for a one-year cap on credit card interest rates at 10% starting on January 20.

The banks have already warned such a step could result in millions of American households and small businesses losing access to credit, essentially a tightening in monetary policy.

GOLD SHINES THROUGH UNCERTAINTY Three former Fed chairs, Janet Yellen, Ben Bernanke and Alan Greenspan, signed a statement on Monday decrying the assault on the central bank's independence ?by the Trump ?administration. They warned that this is more typical in "emerging economies with weak institutions" and can have highly negative consequences for inflation. Global central bank officials issued a coordinated statement of support for Fed Chair Jerome Powell on Tuesday after the Trump administration threatened him with a criminal indictment.

The dollar ?held relatively firm against a basket of currencies, having lost 0.25% overnight. The euro was flat at $1.1665, while the pound edged up to $1.3471. The yen came under heavy fire, falling to an all-time low against the euro and Swiss franc, which in turn helped boost the dollar by 0.5% on the day to 158.89, sparking another round of verbal warnings from Japanese officials that can often precede intervention.

Driving the weakness was a report from the Kyodo news agency that

Prime Minister Sanae Takaichi

plans to dissolve parliament to call an early election to consolidate her mandate and roll out her

proposed spending plans

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Gold, meanwhile, eased 0.3% to $4,579 an ounce, having hit a record high of $4,629.94 on Monday.

"Gold serves as a catch-all, and a default ?hedge of last resort for fear and uncertainty given its reputation as a safe haven and store of value, the fact that it is non-debasable, and is no one else's liability," said Christopher Louney, a gold strategist at RBC Capital Markets.

Oil prices reached seven-week highs on worries that Iran's exports could decline as the sanctioned OPEC member cracks down on anti-government demonstrations.

Brent gained 1.6% to trade at ?nearly $65 a barrel, while U.S. crude rose 1.8% to $60.55. (Additional reporting by Wayne Cole in Sydney and Amanda Cooper in London; Editing by Shri Navaratnam, Susan Fenton and Sharon Singleton)