Global Markets Climb Amid Mild Inflation and Rate Cut Hopes

Global markets reached new highs and the dollar remained subdued as inflation data signaled strength in major economies. The MSCI World Index and Japan's Nikkei peaked, boosted by U.S. rate cut hopes and Trump's tariff delay. Wall Street anticipated gains amid increasing investor confidence.

Global share markets continued their upward trajectory on Wednesday, buoyed by encouraging inflation data and optimistic signals from major economies. The dollar, meanwhile, remained subdued as investors gravitated towards riskier assets amidst expectations of a U.S. rate cut.

The MSCI All Country World Index of shares achieved a new record for a second consecutive day, while Japan's Nikkei stock index also reached fresh heights. European equities saw modest gains, spurred by advancements in technology and defense stocks. These developments were fueled by U.S. inflation readings that suggested President Trump's import tariffs had not yet impacted consumer prices, boosting Wall Street's performance as the Federal Reserve considered future rate cuts.

Adding to the positive sentiment, Trump delayed tariffs on Chinese imports, fostering further market optimism. As Wall Street prepared for continued gains, Japan's Nikkei reached a historic milestone, supported by improving business sentiment and a slowdown in wholesale inflation. Meanwhile, risk-sensitive assets like cryptocurrency ether and sovereign bonds experienced fluctuations in response to economic indicators.

(With inputs from agencies.)