Global stocks reach all-time high as investors bet on decreasing US inflation

Investor sentiment was positive on Wednesday, as global equities hit a new high before the release of the US inflation report. The MSCI All Country World Index increased by 0.1% after seeing a record high in the previous trading session. This index has seen an impressive 6% increase since hitting a low point in April, with investors feeling more optimistic as the US dollar weakened and Chinese equities rebounded.

Despite Federal Reserve Chair Jerome Powell’s suggestion that interest rates may need to stay elevated for a longer period to combat rising prices, many investors seem to be betting on a more moderate inflation reading in the upcoming report. There is growing confidence in the market ahead of this important data release, with many investors hoping for a decrease in underlying US inflation for the first time in six months.

Back in March, global equities also saw gains in anticipation of US inflation data, but tensions between Iran and Israel disrupted its progress. Investors will be closely watching the incoming inflation data to gauge its impact on the Federal Reserve’s interest rate trajectory and the broader market sentiment.

By Sophia Gonzalez

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