Global Market Surge Following China’s Economic Stimulus and U.S. Inflation Easing

Global stock indexes reached record highs as China's central bank cut interest rates and introduced more liquidity into its banking system. This, paired with continued easing U.S. inflation, led to lower Treasury yields. Meanwhile, Japan's former defense minister, Shigeru Ishiba, is poised to become the next prime minister, strengthening the yen against the dollar.

Global stock indexes hit all-time highs on Friday following China's central bank decision to lower interest rates and inject liquidity into its banking system. Concurrently, U.S. inflation continued to ease, contributing to a dip in Treasury yields.

The yen firmed against the dollar as Shigeru Ishiba, Japan's former defense minister, appeared set to become the next prime minister. Across Europe, the STOXX 600 index rose to a record high, while the Dow and MSCI global stock index also saw record intraday highs.

Data revealed the personal consumption expenditures price index, favored by the Federal Reserve, rose 0.1% in August. This data raised the probability of a significant interest rate cut at the Fed's November policy meeting. Meanwhile, China's stock market saw significant gains, driven by Beijing's economic stimulus measures, and metal prices rose with aluminum touching a 16-week high.

(With inputs from agencies.)