Equities Rise on Mild Inflation Data as Rate Hike Bets Dented

Global equities rose on Wednesday as mild inflation data reinforced bets that the Federal Reserve will hold interest rates steady. The U.S. consumer prices index increased by 0.1% in July, in line with expectations. This development could weaken the argument for an interest rate increase from the Fed next month.

The small rise in inflation was a relief for investors, who had been concerned that higher energy prices would fuel further rate hikes. Robert Pavlik, senior portfolio manager at Dakota Wealth Management, said that the data 'relieves some of the concerns' about a rate hike due to inflation.

Oil prices, however, were mixed as investors balanced lower demand forecasts against tensions between the U.S. and Iran. The MSCI's gauge of stocks across the globe rose 0.34%, while the Dow Jones Industrial Average fell by 0.04% to 53,770.27.