Global Markets Rally Amid Geopolitical Tensions and Inflation Eases

MSCI's global stock index advanced on Wednesday, buoyed by softer-than-expected U.S. inflation data that heightened expectations for Federal Reserve rate cuts. Amidst geopolitical tensions, oil prices surged, and gold stayed near record highs.

The U.S. Labor Department reported a 0.1% dip in the Producer Price Index, undercutting economists' predictions. This data signaled potential for multiple rate cuts by the Federal Reserve, with traders forecasting a 25 basis point cut in the upcoming meeting.

Wall Street showed mixed reactions, with the S&P 500 and Nasdaq achieving minor gains, while the Dow saw a decline. Geopolitical factors, including Israel's actions in Qatar and a Russian attack in Ukraine, contributed to fluctuating commodity prices, notably oil and gold.

(With inputs from agencies.)