Disinflation Ducks Lining Up, Global Shares Mostly Fall

Global shares mostly fell on Friday, with US futures trading mixed after July's wholesale inflation data showed a better-than-expected slowdown in price growth.

The DAX index in Germany rose 0.5% to 26,442.54, while the CAC 40 in Paris edged less than 0.1% lower to 8,648.48.

However, the S&P 500 futures were little changed and Dow Jones Industrial Average futures declined 0.1%, indicating a mixed start for US markets.

The US inflation data showed prices at the wholesale level rose 4.7% in July compared to last year, which is still higher than desired but lower than June's 5.5% rate.

Analysts believe that if inflation continues to trend downward, the Federal Reserve may decide to hold off on interest rate hikes, which would help keep a lid on inflation but also intentionally slow the economy and make borrowing more expensive.

Stephen Innes of SPI Asset Management noted, 'The disinflation ducks are starting to line up, and with oil also backing off, the market has steadily stripped away the case for another near-term Fed hike.'