Markets Rise as Inflation Stays On Track

Global shares and Wall Street indexes gained as inflation data supported predictions of a Federal Reserve rate cut. European and U.S. shares improved, U.S. Treasury yields rose, and gold and oil prices increased. In contrast, Asia-Pacific shares dipped, and the Canadian dollar strengthened on a Bank of Canada rate decision.

Global markets experienced an uptick, with Wall Street indexes benefiting from steady inflation data that reinforced expectations for a Federal Reserve rate cut later this month. The dollar achieved a two-week peak, and gold prices saw a boost. Oil prices rose more than a dollar following the EU's decision to impose further sanctions affecting Russian oil.

European stocks reversed earlier losses, closing higher, while U.S. Treasury yields increased amid the Treasury Department's sale of long-term bonds and data indicating an expanding U.S. budget deficit. Despite the Dow Jones Industrial Average's slip, the S&P 500 and Nasdaq Composite gained ground, driven by economic developments.

The Labor Department's figures noted a 0.3% rise in the Consumer Price Index for November, aligning with forecasts. MSCI's global stock index appreciated, and analysts predicted the Federal Reserve would proceed with a planned interest rate cut of 25 basis points. Additionally, currencies in Asia weakened against the dollar following speculation about China's currency strategy.

(With inputs from agencies.)