Global Markets Rally Amid Inflation Relief and Strong Earnings

Global stock markets surged following reports of easing U.S. inflation, bolstering hopes for Federal Reserve interest rate cuts. Strong earnings from key corporations such as Richemont and Taiwan Semiconductor further fueled the rally. European and Asian indices climbed, while bond yields fell, reflecting optimistic investor sentiment.

On Thursday, global stock markets experienced a significant surge, buoyed by data indicating reduced U.S. core inflation. This has raised expectations for Federal Reserve interest rate cuts, leading to a drop in global bond yields.

Contributing to the rally were strong earnings reports from blue-chip companies, including a 17% rise in Richemont shares following better-than-expected results. This lift extended to the broader European luxury sector and was mirrored by gains on Wall Street.

The inflation data, showing a consumer price index rise in line with expectations, was a key driver, leading traders to forecast further Fed rate cuts. As optimism spread, major indices in Europe, Asia, and the U.S. posted substantial gains, underlining increased investor confidence.

(With inputs from agencies.)