Markets on the rise
On Wednesday, global equity markets set fresh all-time highs, while the US dollar edged lower. Investors were encouraged by moderate inflation figures and signs of resilience in leading economies, which, combined with expectations of a US rate cut, fueled appetite for riskier assets.
Global indices at their peak
The MSCI All Country World Index climbed for the second consecutive day, reaching 950.13 points, the highest level on record. Japan's Nikkei also extended its rally, notching a new record for the second session in a row.
Europe follows trend
European exchanges saw broad gains on Wednesday, with technology and defense companies leading the way. Optimism was reinforced by fresh US inflation data, which strengthened the view that the Federal Reserve could move toward cutting its key interest rate.
STOXX 600 and DAX post gains
By mid-morning in Europe, the STOXX 600 Index was up 0.4%, while Germany's DAX gained 0.6%, recovering from the previous day's decline.
Inflation without surprises
Data released on Tuesday showed that the US consumer price index for the year ended in July rose slightly less than expected. This indicates that the import tariffs introduced by President Donald Trump have so far not been reflected in consumer prices.
Support from Wall Street
The subdued inflation data helped lift US stock indices and bolstered expectations that the Fed could cut interest rates as early as next month. An additional boost came from Trump's decision to extend the suspension of higher tariffs on Chinese goods for another 90 days.
Wall Street extends gains
The US stock market started the day on an optimistic note, with S&P 500 futures gaining 0.7%, signaling the potential continuation of the upward trend.
Positive news from Japan
In Japan, fresh quarterly Tankan survey data from the Bank of Japan showed an improvement in sentiment among manufacturers for the second month in a row. At the same time, a new report indicated a slowdown in wholesale inflation in July, confirming the regulator's forecast of a gradual easing in price pressures caused by higher commodity costs.
Nikkei reaches new heights
Japan's Nikkei index rose for the sixth consecutive session and, for the first time, surpassed the 43,000-point mark, setting a new all-time record.
Cryptocurrencies in the green
Ether, one of the key cryptocurrencies, advanced to nearly a four-year high, exceeding the level of $4,679.
Dollar under pressure
The US dollar index, which reflects the performance of the greenback against a basket of major global currencies, fell for the second straight day, down 0.2% to 97.80. The dollar/yen pair declined by 0.2% to 147.47, while the euro strengthened by 0.3% to $1.1706, extending its rise after a 0.5% gain the previous day.
Markets and stagflation concerns
Investors closely monitored fresh inflation data that followed an unexpectedly weak employment report released on August 1. These figures intensified discussions about the possibility of stagflation, a combination of high inflation and rising unemployment.
Politics and finance
US President Donald Trump has temporarily appointed White House adviser Stephen Miran to a vacant seat on the Federal Reserve Board of Governors. This move has sparked a wave of speculation about the potential influence of the president on the course of monetary policy.
German bond yields decline
On Wednesday, the yield on 30-year German government bonds fell, retreating from the 14-year high recorded the previous day.
Oil edges lower
The price of US WTI crude slipped by 0.2% to $62.99 per barrel.
Tourism supports TUI
Shares of TUI gained 1.7% after Europe's largest tour operator reported financial results that exceeded analysts' forecasts. The company noted that strong demand for summer holidays is helping to sustain growth momentum.
E.ON strengthens its position
Energy giant E.ON reported an increase in underlying profit in the first half of the year and reaffirmed its full-year guidance. As Europe's largest electricity grid operator, the company called on German authorities to improve the future returns on infrastructure investments. E.ON shares posted a modest gain.
Vestas loses ground
Shares of Denmark's Vestas fell by 1.8% after the company's quarterly report showed operating profit growth weaker than expected. Nevertheless, the wind turbine manufacturer maintained its full-year outlook.
