Global Markets Rally Amid Interest Rate Expectations

Global shares and Wall Street indexes rose following an inflation report suggesting the Federal Reserve might cut interest rates soon. The dollar hit a two-week high, gold prices increased, and oil gained over $1 due to new EU sanctions on Russian oil. European and emerging markets showed mixed performances.

Global shares and Wall Street indexes climbed on Wednesday, buoyed by an inflation reading that aligned with expectations, sustaining predictions that the Federal Reserve will cut interest rates later this month. The dollar reached a two-week peak, while gold and oil prices saw notable increases amid geopolitical tensions.

European shares reversed early losses to close higher, with major U.S. indexes showing mixed results. The Dow Jones Industrial Average saw a slight decline, the S&P 500 posted a modest gain, and the Nasdaq Composite surged. Global stocks, as measured by MSCI, rose marginally, reflecting a cautious optimism in the markets.

Despite regional fluctuations, inflation figures from the U.S. Labor Department reinforced the outlook for monetary policy adjustments. The Consumer Price Index rose 0.3% month-over-month, consistent with forecasts, which experts believe will prompt the Fed to proceed with a 25 basis points rate cut. Additional movements were observed in currencies and commodities, influenced by international trade dynamics and central bank interventions.

(With inputs from agencies.)