US Inflation Data Boosts Stocks as Oil Prices Edge Higher Amid Hormuz Tensions

Global stock markets maintained their upward momentum on Wednesday after the release of US inflation data, which came in line with expectations. The Consumer Price Index (CPI) rose by a modest 0.1% last month, following a 0.4% decline in June.

The annual CPI inflation rate slowed to 3.4%, down from 3.5% the previous month. This development is seen as a positive sign for the Federal Reserve, which has been closely watching inflation rates before making any decisions on interest rates.

Despite the lack of progress in negotiations to end the Iran war and reopen the Strait of Hormuz to shipping traffic, investors remain calm, with stocks across the globe close to record highs. The US crude oil price rose by 0.7% to $83.71 a barrel, while Brent oil increased by 0.3% to $89.19 per barrel.

Richard Carter, head of fixed interest research at Quilter Cheviot, noted that inflation is 'heading in the right direction' and that there should be a 'fairly sanguine market reaction' to the latest figures.