Record Highs: Global Markets Soar on U.S. Inflation Data and Trade War Truce

World shares reached record highs due to U.S. consumer price data suggesting a potential Federal Reserve rate cut and a trade war ceasefire. The S&P 500, Nasdaq, and Dow Jones rose notably, driven by gains in technology and financials. European and Asian stocks followed suit, buoyed by positive sentiment.

Global stocks reached unprecedented levels on Tuesday, fueled by U.S. consumer price data that hinted at a Federal Reserve interest rate cut in September, and a provisional trade war truce between the U.S. and China. This optimistic outlook propelled Wall Street indices such as the S&P 500 and the Nasdaq to historic peaks.

European stocks mirrored these gains, with MSCI's global stock indicator achieving a new record. U.S. inflation data showed a moderate 2.7% rise in consumer prices, slightly below forecasts but enough to bolster hopes for economic stability.

As investors processed these developments, short-term U.S. treasuries rallied and currency movements reflected optimism. Meanwhile, commodities like gold saw a minor uptick, and oil prices adjusted ahead of international diplomatic talks. The financial landscape remains dynamic, driven by global economic and political factors.

(With inputs from agencies.)