Global Markets React to Soft U.S. Inflation and Middle East Tensions

MSCI's global equities index rose following soft U.S. inflation data. Major banks reported strong results, and ongoing U.S.-Iran tensions affected oil prices. Wall Street saw gains, with banks outperforming, although the conflict remained a market overhang. Fed Chair reaffirmed the inflation target, causing a weaker dollar.

MSCI's global equities index showed improvement with softer-than-anticipated U.S. inflation data and robust quarterly figures from significant banks. Meanwhile, oil prices experienced a rise amid U.S.-Iran geopolitical tensions in the Middle East.

The U.S. Consumer Price Index recorded a lower-than-expected 3.5% increase through June, down from May's 4.2% surge. Market dynamics also responded to ongoing tensions in the Strait of Hormuz, affecting oil prices and supply constraints.

Big U.S. banks rallied over strong trading revenue and corporate deals, with JPMorgan Chase declaring a record profit. The Federal Reserve reiterated its commitment to a 2% inflation target, weakening the dollar and affecting yields, while the precious metals market saw a rise in gold.