Global Markets Rise Amid Inflation and Rate Speculations

Global shares rose as investors anticipate upcoming U.S. inflation data, impacting Federal Reserve rate decisions. European markets gained with copper and mining stocks leading. Japanese government bonds saw a selloff, strengthening the yen. All eyes are on the Federal Reserve and Bank of Japan's potential rate changes.

Global shares saw an uptick on Friday, marking a second consecutive week of gains, as markets prepared for a crucial U.S. inflation report. Investors remain optimistic that this data will not hinder the Federal Reserve from cutting interest rates next week, putting pressure on the dollar and boosting gold prices.

European stock markets opened stronger, driven by mining stocks following record-high copper prices. The STOXX 600 index, which increased by 0.7% this week, was up 0.3% by mid-morning trade. U.S. stock futures also pointed to a modest rally on Wall Street, rising between 0.2% to 0.4%. Government bonds traded steadily ahead of the U.S. core inflation data.

Japanese government bonds drew significant attention, leading a global debt selloff. Yields on 10-year JGBs reached their highest level since mid-2007, as the Bank of Japan signaled a potential rate increase. This caused a reactive strengthening of the yen against the U.S. dollar, with markets closely monitoring both the Federal Reserve and the Bank of Japan's upcoming decisions.

(With inputs from agencies.)