Forex
US Inflation Eases Fed Pressure, Stocks & Bonds Soar
A benign US inflation reading has eased pressure on the Federal Reserve to raise interest rates, causing stocks and bond prices to surge. The S&P 500 index hit a new high, with investors cheering the relatively low inflation numbers.
Gold also saw a revival in investment, driven by uncertainty around US rate policy, Fed credibility, and renewed conflict in the Middle East. Central banks have been buying gold amid this uncertainty.
The UK economy unexpectedly grew in June, boosted by the World Cup, hot weather, and a respite from the Middle East energy shock. However, forecasts suggest that growth may slow down in the second half of the year.