US Economy Defies Expectations with Strong Growth, Mixed Market Reactions

Global markets are trading mixed despite strong US economic data that fueled expectations of potential postponement in Federal Reserve rate hikes.

The US economy grew 2.2% year-on-year in the second quarter, surpassing preliminary estimates of 1.5%, while the core Personal Consumption Expenditures (PCE) index rose 0.2% month-on-month and 3% on an annual basis in August.

Private sector employment increased by 90,000, exceeding market expectations, but interest rates are expected to remain high despite lower-than-expected inflation and better-than-expected growth figures.