Stocks Brush Against Records Amid Soothing Inflation Data
Global stocks have edged closer to record highs after inflation data showed benign numbers in the US, reducing expectations for a rate hike next month. The MSCI All-World index is up for its third straight week and has traded just below record highs.
The STOXX 600 gauge in Europe was slightly lower on the day due to losses in the tech sector being offset by gains in capital-intensive shares such as defence and automakers.
Despite geopolitical uncertainty remaining, particularly with ongoing tensions between the US and Iran, investors are showing no signs of alarm. Short-dated bond yields have risen modestly this week, while several market-based measures of inflation expectations have trended lower.
The focus remains on the broad AI theme following strong earnings that have helped soothe investor worries about massive AI spending.