Stocks Surge as Fed Holds the Line: A Global Market Overview

Global shares and Wall Street indexes rose after inflation matched expectations, suggesting a potential Federal Reserve rate cut. While the dollar strengthened and gold prices rose, oil prices fluctuated following an OPEC demand revision. Analysts predict rate changes in Canada and Europe, impacting commodity markets.

Global stock markets experienced a rise on Wednesday as inflation figures aligned with forecasts, prompting optimism regarding potential cuts in interest rates by the Federal Reserve later this month.

The dollar reached its highest value in two weeks, correlating with a rise in gold prices. Oil markets, however, displayed volatility as OPEC revised down its demand growth forecasts. Major U.S. indexes like the Dow Jones, S&P 500, and Nasdaq Composite all closed with gains.

In the bond market, the yield on U.S. 10-year notes slightly increased. The Canadian dollar hovered near multi-year lows amid speculation of a significant rate cut by the Bank of Canada prompted by economic data. Meanwhile, commodity markets responded to these financial policy speculations, with a particular focus on gold, coffee, and oil.

(With inputs from agencies.)