Global Stock Market's Mixed Response to Inflation News and Political Tensions

World stock markets displayed mixed trends amid reactions to anticipated U.S. inflation updates and political tensions involving Trump and the Federal Reserve. Notably, Asian markets performed well, driven by technological stocks in Japan. The "Takaichi trade" influenced yen value while geopolitical issues affected financial policy stability.


Devdiscourse News Desk | Hong Kong | Updated: 13-01-2026 16:33 IST | Created: 13-01-2026 16:33 IST
Global Stock Market's Mixed Response to Inflation News and Political Tensions
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World stock markets showed mixed results on Tuesday as investors awaited an update on U.S. consumer price inflation. Major indices in Europe saw slight fluctuations, as Germany's DAX and France's CAC 40 experienced small declines, while the FTSE 100 edged upward.

In Asia, shares mostly rose, led by a significant rally in Japan fueled by technology stocks. The Nikkei 225 hit a record high, driven by gains from companies like Advantest and Tokyo Electron. At the same time, the "Takaichi trade" was attributed to a stronger dollar against the yen due to anticipated political moves by Japan's Prime Minister.

Tensions between the U.S. government and the Federal Reserve added uncertainty to financial markets. With Trump's calls for lower interest rates, there was concern about potential impacts on monetary policy. Meanwhile, high-profile tech stocks continued to thrive, exemplified by Alphabet's market value surge as part of a strategic partnership with Apple.

(With inputs from agencies.)

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