Global Stocks Hold Gains on In-Line US CPI Data
Global stock markets held their ground on Wednesday after US inflation data came in line with expectations. The Consumer Price Index (CPI) rose by a marginal 0.1% last month, following a 0.4% drop in June.
The annual CPI inflation rate slowed to 3.4%, down from 3.5% the previous month. This development is seen as positive for markets, with Federal Reserve Chair Kevin Warsh not wanting to provide forward guidance.
As a result, traders are sticking to their bets that the Fed will keep interest rates unchanged at its next meeting in August, with a 55% chance of a hold. US stock futures and major indexes across Europe and Asia rose accordingly, with the STOXX 600 up about 0.2%.
In other news, oil prices edged higher after a senior Iranian official told Reuters that there were no discussions between Iran and the US to extend their ceasefire. This comes despite recent attacks on shipping in the Middle East and escalating rhetoric from both sides.