Global markets update: US stocks gain after slowdown in inflation, Nasdaq rallies 1.16%
inflation data bolstered hopes that the Federal Reserve could end its interest rate hikes soon. The S&P 500 gained 33.40 points, or 0.75%, at 4,472.66 points. The Nasdaq Composite climbed 160.30 points, or 1.16%, at 13,921.00. The Dow Jones Industrial Average rose 92.17 points, or 0.27%, at 34,353.59.
In June, US consumer prices advanced 3%, their smallest year-on-year increase since March 2021, after 4% growth in May. The Core inflation, which excludes volatile food and energy prices, also grew 4.8% last month, moderating from a 5.3% increase in May. The yield on 10-year treasuries declined 11 basis points to 3.86%.
The US dollar fell to 138.33 Japanese yen from 140.46. The euro rose to $1.1137 from $1.1000. European shares jumped on Wednesday, led by gains in technology and miners.
The pan-European STOXX 600 index closed 1.5% higher. Britain’s FTSE 100 surged 1.8% at 7,416.11. Germany’s DAX rose 1.5% at 16,023.
France’s CAC 40 added 1.6% at 7,333.01. Shares of UK's Virgin Money climbed 11.5%, while shares of Lloyds, Barclays and HSBC rose about 3% each after the Bank of England said Britain's eight largest lenders showed no capital inadequacies. With a 3.8% rise, miners were the biggest sectoral gainers as metal prices climbed on a weaker dollar.
Air France-KLM shares fell 3.8% after Deutsche Bank cut the stock to “hold" from “buy". A report showed Spanish inflation rose 1.9% in the 12 months through June, down from a 3.2% rise in the period through May. Asian equities were mixed on Wednesday.
Hong Kong’s Hang Seng index rose 1.1% at 18,860.95. China’s Shanghai Composite fell 0.8% at 3,196.13. Japan’s Nikkei 225 declined 0.8% at 31,943.93.
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