Global Shares Surge Amid Mixed Signals from Central Banks

Global shares rose following benign U.S. inflation data and mixed central bank decisions. The Bank of England cut rates, while the European Central Bank held steady. U.S. inflation was lower than expected, boosting equity futures. Markets reacted to ongoing tariff impacts and speculations of U.S. rate cuts.

Global shares saw an uplift on Thursday, buoyed by U.S. inflation data that suggested a slower increase than expected, despite recent tech selloffs due to concerns over AI spending. Investors assessed mixed signals from central banks, reflecting varying monetary policies globally.

The Bank of England cut interest rates, which led to a modest rise in the pound, even as it signaled limited room for further easing. The European Central Bank maintained eurozone rates, projecting optimism despite economic challenges posed by tariffs. Meanwhile, the Bank of Japan's anticipated rate hike leaves traders uncertain about future tightening policies.

European and U.S. stocks rebounded, with anticipation of rate cuts next year fueled by a lower-than-expected rise in the U.S. Consumer Price Index. Commentary from key economic figures highlights the complexity of current inflation dynamics, pointing to other inflation drivers like rent and car prices. In energy markets, oil prices rose with geopolitical tensions impacting supply chains.

(With inputs from agencies.)