Global stock markets experienced a surge on Thursday, driven by anticipation of the upcoming US inflation data and the European Central Bank’s interest rate decision. The dollar strengthened against the euro and other major currencies.
In Asia, the Tokyo stock market reached a record high, with the Nikkei 225 rising 1.2 percent to 44,372.50 at close. This increase was largely attributed to a 10-percent surge in the share price of tech investment giant SoftBank. Similarly, the Shanghai Composite climbed 1.7 percent to 3,875.31, while the Hang Seng Index in Hong Kong fell 0.4 percent to 26,086.32.
European markets also saw gains, with the FTSE 100 in London up 0.5 percent at 9,274.16, the CAC 40 in Paris rising 0.8 percent to 7,825.89, and the DAX in Frankfurt increasing 0.2 percent to 23,674.47. On Wall Street, the S&P 500 hit a fresh record high on Wednesday, thanks to a significant surge in the share price of Oracle, which projected substantial revenue growth due to its thriving artificial intelligence investments.
The US consumer price index update, scheduled for release on Thursday, is expected to provide insight into the Federal Reserve’s potential decision to cut interest rates before the end of the year. Recent weak US jobs numbers and falling producer prices have led analysts to anticipate a reduction in borrowing costs. A softer-than-expected inflation report could fuel speculation of a significant Fed rate cut to support the weakening jobs market, according to Ipek Ozkardeskaya, a senior analyst at Swissquote Bank.
In contrast, the European Central Bank is likely to maintain its key interest rate at 2 percent, given the current control over eurozone inflation and easing trade tensions. The International Energy Agency reported that global oil supply reached a record high in August, leading to a surplus that is keeping prices in check. As a result, oil prices fell on Thursday, with Brent North Sea Crude down 0.7 percent at $67.02 per barrel and West Texas Intermediate down 0.8 percent at $63.14 per barrel.
The current market trends and upcoming economic decisions are being closely watched by investors, as they await further clues on the potential actions of central banks and their impact on the global economy. The significance of these developments will become clearer in the coming days, as the market responds to the latest data and decisions from major financial institutions.
