Global Equities Edge Higher on Mild Inflation Data
Global equities edged higher on Wednesday after mild inflation data reinforced bets that the Federal Reserve will hold interest rates steady. The Consumer Price Index rose by a mere 0.1% in July, matching expectations and weakening the argument for an interest rate hike next month.
The data relieved some of the concerns that the Fed is being pushed toward a rate hike due to inflation, fueled by higher energy prices, according to Robert Pavlik, senior portfolio manager at Dakota Wealth Management.
Gold prices reached their highest level in over two months as the data dented rate hike bets. U.S. Treasuries held gains, lifting yields.
The oil market was a mixed bag, with Brent crude futures dropping 0.37% to $88.58 per barrel and U.S. crude falling 0.26% to $82.98. Investors weighed lower demand forecasts against the deadlock in U.S.-Iran talks.