Global Markets Brace for Crucial Economic Data and Central Bank Decisions

World markets held steady near highs as traders prepared for pivotal ECB interest rate decisions and key U.S. inflation data. Tech stocks uplifted gains, with expectations for more rate cuts by the Fed. Currency and commodity markets showed mixed signals amid geopolitical tensions and inflation pressures.

World stocks remained near record levels Thursday as traders awaited the European Central Bank's interest rate decision and fresh U.S. inflation data. High-performing tech stocks pushed Japan, Taiwan, and South Korea's markets to new highs overnight, while Europe experienced a steady morning before the ECB's anticipated decision to maintain the eurozone's 2% rates, marking a potential second consecutive hold.

With U.S. consumer price inflation data also in focus, most traders appeared cautious. The euro stood at $1.1690, climbing almost 13% against the dollar this year. Meanwhile, France's borrowing costs were under scrutiny, despite prior attempts by bond vigilantes to elevate them above Italy's. ABN AMRO strategist Benoit Begoc highlighted attention on the ECB's upcoming economic forecasts and the possibility of further rate cuts.

In the commodities arena, oil prices dipped following recent gains, with geopolitical tensions influencing market dynamics. Gold and copper also saw shifts, reacting to broader economic signals. On Wall Street, expectations rose for further gains, driven by significant movements in tech stocks like Oracle. As U.S. producer price data suggested, markets entertained prospects of imminent rate cuts from the Federal Reserve. Investors are now closely evaluating August's consumer price index data to gauge future market directions.

(With inputs from agencies.)