Global Markets Surge Amid Cooling U.S. Inflation and Stellar Earnings

Global shares soared and the dollar declined as core U.S. inflation rose less than expected, boosting speculation of a second rate cut this year. Positive quarterly earnings from major firms like JPMorgan also contributed to investor optimism. Additionally, the British market saw gains due to cooled inflation.

In a positive turn for global markets, shares surged while the dollar declined, following data revealing a less-than-anticipated rise in core U.S. inflation for December. This development heightened expectations for a second rate cut by the Federal Reserve this year as investors celebrated major earnings reports.

Key fourth-quarter results announced by financial giants such as JPMorgan, BlackRock, and Goldman Sachs spurred a rally in U.S. stock index futures, which climbed between 1.5% to 1.7%. Meanwhile, U.S. Treasury yields experienced a decline, indicating a subtle easing of inflationary pressures.

The British market also mirrored this optimism as homebuilders' shares rose sharply after data revealed a cooling in U.K. inflation, potentially allowing the Bank of England more room to adjust interest rates. The movements in foreign exchange and commodities markets further reflected these economic shifts.

(With inputs from agencies.)