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13.08.2025 12:10 PM
On Wednesday, global equity markets set fresh all-time highs, while the US dollar edged lower. Investors were encouraged by moderate inflation figures and signs of resilience in leading economies, which, combined with expectations of a US rate cut, fueled appetite for riskier assets.
The MSCI All Country World Index climbed for the second consecutive day, reaching 950.13 points, the highest level on record. Japan's Nikkei also extended its rally, notching a new record for the second session in a row.
European exchanges saw broad gains on Wednesday, with technology and defense companies leading the way. Optimism was reinforced by fresh US inflation data, which strengthened the view that the Federal Reserve could move toward cutting its key interest rate.
By mid-morning in Europe, the STOXX 600 Index was up 0.4%, while Germany's DAX gained 0.6%, recovering from the previous day's decline.
Data released on Tuesday showed that the US consumer price index for the year ended in July rose slightly less than expected. This indicates that the import tariffs introduced by President Donald Trump have so far not been reflected in consumer prices.
The subdued inflation data helped lift US stock indices and bolstered expectations that the Fed could cut interest rates as early as next month. An additional boost came from Trump's decision to extend the suspension of higher tariffs on Chinese goods for another 90 days.
The US stock market started the day on an optimistic note, with S&P 500 futures gaining 0.7%, signaling the potential continuation of the upward trend.
In Japan, fresh quarterly Tankan survey data from the Bank of Japan showed an improvement in sentiment among manufacturers for the second month in a row. At the same time, a new report indicated a slowdown in wholesale inflation in July, confirming the regulator's forecast of a gradual easing in price pressures caused by higher commodity costs.
Japan's Nikkei index rose for the sixth consecutive session and, for the first time, surpassed the 43,000-point mark, setting a new all-time record.
Ether, one of the key cryptocurrencies, advanced to nearly a four-year high, exceeding the level of $4,679.
The US dollar index, which reflects the performance of the greenback against a basket of major global currencies, fell for the second straight day, down 0.2% to 97.80. The dollar/yen pair declined by 0.2% to 147.47, while the euro strengthened by 0.3% to $1.1706, extending its rise after a 0.5% gain the previous day.
Investors closely monitored fresh inflation data that followed an unexpectedly weak employment report released on August 1. These figures intensified discussions about the possibility of stagflation, a combination of high inflation and rising unemployment.
US President Donald Trump has temporarily appointed White House adviser Stephen Miran to a vacant seat on the Federal Reserve Board of Governors. This move has sparked a wave of speculation about the potential influence of the president on the course of monetary policy.
On Wednesday, the yield on 30-year German government bonds fell, retreating from the 14-year high recorded the previous day.
The price of US WTI crude slipped by 0.2% to $62.99 per barrel.
Shares of TUI gained 1.7% after Europe's largest tour operator reported financial results that exceeded analysts' forecasts. The company noted that strong demand for summer holidays is helping to sustain growth momentum.
Energy giant E.ON reported an increase in underlying profit in the first half of the year and reaffirmed its full-year guidance. As Europe's largest electricity grid operator, the company called on German authorities to improve the future returns on infrastructure investments. E.ON shares posted a modest gain.
Shares of Denmark's Vestas fell by 1.8% after the company's quarterly report showed operating profit growth weaker than expected. Nevertheless, the wind turbine manufacturer maintained its full-year outlook.
