Global Markets Surge as Anticipation Builds for U.S. Interest Rate Cuts

World stocks achieved new all-time highs on Thursday due to anticipation of U.S. inflation data, which is expected to prompt an interest rate cut by the Federal Reserve in September. Positive GDP data from the UK and stable markets in Japan and Australia also contributed to the optimism.

World stocks reached new all-time highs on Thursday, driven by anticipation of U.S. inflation data set to influence the Federal Reserve's decision on interest rate cuts, potentially as early as September.

The U.S. CPI figures and the beginning of Wall Street's earnings season marked a busy day, with robust UK GDP data and gains in European soccer adding to the positive sentiment. Main bourses in Europe climbed 0.4%-0.7% in early trading following record highs in the U.S. and Tokyo, pushing MSCI's all-country world index to a new peak.

Steady bond markets and the dollar kept the yen weak, allowing the sterling to reach a 4-month high. Overnight, Japan's Nikkei and Taiwanese stocks hit record highs, with Australia's ASX 200 nearing its peak. Wall Street heavyweights pushed Nasdaq and S&P 500 to new highs. The prospect of interest rate cuts remains a key driver, as indicated by comments from U.S. Federal Reserve Chair Jerome Powell.

(With inputs from agencies.)