Global Stock Markets Rise as traders await U.S. inflation data and ECB’s rate decision, fueling optimism about possible interest rate cuts

Global Stock Markets Rise on Thursday as optimism surged ahead of major economic updates from the United States and the European Central Bank.

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Asian and European indices posted gains, with Tokyo’s Nikkei hitting a record high and the Paris CAC 40 rising 0.8%.

This came as investors closely monitored signs that inflation may be softening and interest rate cuts could be on the horizon.

In the U.S., traders are eyeing the latest consumer price index (CPI) release, expected to further clarify the Federal Reserve’s next move.

Wednesday’s data already showed a decline in producer prices — a trend that, alongside weaker job numbers, has strengthened bets for a rate cut at the Fed’s September meeting.

“A softer-than-expected set of numbers could fuel bets of a jumbo Fed cut next week to support a weakening jobs market,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

Meanwhile, the European Central Bank is expected to hold its key interest rate steady at 2% for the second consecutive meeting, amid cooling eurozone inflation and easing trade tensions.

Wall Street also joined the rally, with the S&P 500 touching new highs after Oracle’s strong earnings forecast, driven by soaring AI demand. In Asia, SoftBank shares surged 10%, propelling the Nikkei to new records.

However, not all markets were bullish. Hong Kong’s Hang Seng Index slipped 0.4%, and U.S. oil prices fell despite rising geopolitical tensions.

The International Energy Agency reported record-high global oil supply in August, further pressuring crude prices.

The dollar strengthened slightly against the euro, pound, and yen, reflecting caution ahead of the inflation data.

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This global market performance shows a renewed sense of investor confidence, as easing inflation may finally lead central banks to loosen policy and support flagging economies.

Source: Read more at theheute.com.ng