US-Iran Talks Weigh Heavy on Global Equities Amid Ongoing Tensions
Global equities inched up on Wednesday while oil prices dipped as traders monitored talks to end the Iran war and digested US data showing a slight rise in inflation.
The Iran conflict has been a major concern for markets, with tensions between the US and Iran causing oil prices to surge. However, despite separate ship attacks reported by the US and Yemen's Iran-aligned Houthis on Tuesday, investors have remained calm.
US consumer prices increased 0.1% in July, in line with expectations, which may weaken the argument for a Federal Reserve rate hike next month. Money markets have shown a roughly 50% chance of a hike heading into the data release.
Robert Pavlik, senior portfolio manager at Dakota Wealth, said the data 'relieves some of the concerns that the Fed is being pushed toward a rate hike due to inflation, which is being fueled by higher energy prices.'