Stocks advance after mild U.S. CPI data
Global equity markets gained on Tuesday after U.S. inflation figures came in slightly below forecasts, easing concerns of aggressive price pressures and reinforcing expectations for a Federal Reserve rate cut in September. Wall Street’s major indexes recovered from Monday’s losses, with the Dow Jones Industrial Average up 0.89%, the S&P 500 climbing 0.56%, and the Nasdaq Composite advancing 0.60%. Gains were led by financials, communication services, energy, industrials, and materials.
In Europe, the STOXX index edged 0.19% higher, while MSCI’s global stocks benchmark added 0.56% to reach 943.41. The U.S. Labor Department reported the Consumer Price Index rose 2.7% year over year in July, just under the 2.8% economists had anticipated. James St. Aubin, chief investment officer at Ocean Park Asset Management, described the report as “fairly benign,” noting it eased worst-case inflation fears.
Trade truce boosts sentiment in Asia
Asian markets also saw moderate gains after President Donald Trump signed an executive order delaying steep tariffs on Chinese imports for 90 days. MSCI’s Asia-Pacific ex-Japan index rose 0.19%. The tariff pause, coupled with softer-than-expected CPI data, solidified market bets for a September rate cut, with CME FedWatch showing a 92% probability.
In bond markets, yields on short-term U.S. Treasuries dipped, with the two-year note down 1.1 basis points to 3.743%, while the 10-year yield rose 3.5 basis points to 4.308%. Investors remain alert following a weaker-than-expected U.S. jobs report earlier this month, which had sparked stagflation concerns.
Global economic updates and currencies
Trade tensions between the U.S. and China have eased slightly following recent negotiations in Geneva, London, and Stockholm. Chinese exports rose 7.2% in July, surpassing forecasts, though factory gate prices saw their steepest decline in two years. In currency markets, the dollar slipped 0.05% against the yen and 0.5% versus the Swiss franc, while the euro climbed 0.43% to $1.1666. The British pound rose 0.5% to $1.3499 after the Bank of England cut rates to 4% last week.
Commodities react to policy signals
Spot gold prices were steady at $3,344.60 per ounce after Monday’s 1.6% drop, triggered by Trump’s announcement that imported gold bars would not face tariffs. Brent crude eased 0.14% to $66.55 a barrel, while U.S. crude fell 0.53% to $63.62, ahead of an August 15 meeting between Trump and Russian President Vladimir Putin focused on resolving the war in Ukraine.
