Global Markets Surge Amid Trade Truce and Economic Optimism
World shares rallied following a U.S.-China trade truce and stable U.S. consumer price data, supporting speculation of a Federal Reserve interest rate cut. Key global markets, including Wall Street, showed positive movement, driven by various sectors. Importantly, short-term relief was observed amid favorable conditions in inflation expectations.
World shares surged on Tuesday after the U.S. consumer prices data upheld expectations of a Federal Reserve interest rate cut come September. This momentum was further reinforced by a temporary U.S.-China trade war truce, boosting market sentiment substantially across major indices such as the Dow Jones, S&P 500, and Nasdaq.
European stocks also experienced a modest rise, with MSCI's global stocks gauge climbing by 0.56%. The U.S. Labor Department reported a consumer price index rise of 2.7% over 12 months to July, slightly below expectations, ensuring no major inflation surprises in the market.
The economic landscape reacted to President Trump's executive order delaying tariffs on Chinese imports, lifting Asian equity indexes. On the geopolitical front, notable currency and commodity movements included a strengthened euro against the dollar, while gold and crude oil prices adjusted slightly amid ongoing geopolitical negotiations.
(With inputs from agencies.)
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