US Inflation Data Brings Relief to Global Markets Amid Mideast Woes

Global markets have shown signs of relief this week due to moderate US inflation data and robust corporate earnings. The US Producer Price Index remained flat month-on-month while rising 4.7% annually in July, falling short of projections.

The cooling inflation picture has pushed Federal Reserve rate hike expectations further out to December, allowing the US Dollar Index to slip below the 100 threshold as Wall Street closed at record highs.

The US 10-year Treasury yield retreated five basis points to 4.66%, while gold prices eased 0.6% to $4,324 per ounce due to profit-taking and a shift toward technology equities.