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Global stocks hold gains after U.S. CPI matches expectations
U.S. CPI rose 0.1% in July and annual inflation eased to 3.4%, leaving traders roughly a 55% chance the Fed holds its policy rate at next month’s meeting.
Global stocks kept their upward momentum on Wednesday after U.S. inflation data came in as expected, with S&P 500 e-minis up 0.4% and Nasdaq futures rising 0.8%, according to Reuters. Europe’s STOXX 600 was up about 0.2%, while major indexes in Frankfurt, Paris, and London were also higher.
The Consumer Price Index edged up 0.1% last month after falling 0.4% in June, aligning with a Reuters poll. Annual CPI inflation slowed to 3.4% from 3.5%, and traders maintained bets that the Federal Reserve will keep its policy rate in the current 3.50% to 3.75% range, with markets pricing about a 55% chance of a hold.
Oil prices also moved higher after a senior Iranian official told Reuters there were no discussions with Washington about extending a ceasefire. Reuters reported investors were still tracking efforts to end the Iran war and reopen the Strait of Hormuz, while South Korea’s Kospi led Asia’s rise with a 3.7% gain and chipmakers lifted sentiment.
In commodities, U.S. crude rose 0.7% to $83.71 a barrel, while investors weighed how any disruption around the Strait of Hormuz could affect energy-driven inflation expectations, Reuters reported.
Latest closeWTI crude $81.19 ▼2.5%|S&P 500 7,798.99 ▲0.7%|Nasdaq Comp. 26,803.03 ▲0.8%