Global Markets React to Inflation Data and Policy Shifts

Global stock indices declined for the second day due to fluctuating U.S. Treasury yields and inflation rates. The Federal Reserve's interest rate policies and potential post-election fiscal changes are key focus areas. Cryptocurrency and small-cap stocks surged amidst expectations of reduced regulations and tax cuts under Trump's policies.

Global stock markets have seen a second consecutive day of declines, impacted by fluctuations in U.S. Treasury yields as investors analyze recent U.S. inflation data and the Federal Reserve's potential interest rate decisions.

The U.S. Labor Department reported that the consumer price index (CPI) rose 0.2% for the fourth consecutive month, aligned with economic forecasts. This data has influenced Treasury yields, which initially fell but later climbed slightly, exerting downward pressure on stock prices.

While Wall Street saw modest gains, largely due to expected rate cuts in December, European and global indices such as the STOXX 600 and MSCI's gauge have retreated. Bitcoin and small-cap stocks have surged due to expectations of deregulation and tax cuts promised by Trump's administration.