Global markets update: US stocks gain after slowdown in inflation, Nasdaq rallies 1.16%

The inflation data bolstered hopes that the Federal Reserve could end its interest rate hikes soon. 

The S&P 500 gained 33.40 points, or 0.75%, at 4,472.66 points. The Nasdaq Composite climbed 160.30 points, or 1.16%, at 13,921.00. The Dow Jones Industrial Average rose 92.17 points, or 0.27%, at 34,353.59.

In June, US consumer prices advanced 3%, their smallest year-on-year increase since March 2021, after 4% growth in May.

The Core inflation, which excludes volatile food and energy prices, also grew 4.8% last month, moderating from a 5.3% increase in May.

The yield on 10-year treasuries declined 11 basis points to 3.86%.

Currencie

The US dollar fell to 138.33 Japanese yen from 140.46. The euro rose to $1.1137 from $1.1000.

Europe

European shares jumped on Wednesday, led by gains in technology and miners.

The pan-European STOXX 600 index closed 1.5% higher.

Britain’s FTSE 100 surged 1.8% at 7,416.11. Germany’s DAX rose 1.5% at 16,023. France’s CAC 40 added 1.6% at 7,333.01.

Shares of UK’s Virgin Money climbed 11.5%, while shares of Lloyds, Barclays and HSBC rose about 3% each after the Bank of England said Britain’s eight largest lenders showed no capital inadequacies.

With a 3.8% rise, miners were the biggest sectoral gainers as metal prices climbed on a weaker dollar.

Air France-KLM shares fell 3.8% after Deutsche Bank cut the stock to “hold” from “buy”.

A report showed Spanish inflation rose 1.9% in the 12 months through June, down from a 3.2% rise in the period through May.

Asia

Asian equities were mixed on Wednesday.

Hong Kong’s Hang Seng index rose 1.1% at 18,860.95. China’s Shanghai Composite fell 0.8% at 3,196.13.

Japan’s Nikkei 225 declined 0.8% at 31,943.93.

Australia’s S&P/ASX 200 index advanced 0.4% to close at 7,135.70 points. In New Zealand, the benchmark S&P/NZX 50 index closed flat at 11,908.27. 

Energy prices

US crude oil benchmark for August delivery rose 92 cents to $75.75 a barrel Wednesday. Brent crude for September delivery rose 71 cents to $80.11 a barrel.

Natural gas for August delivery fell 10 cents to $2.63 per 1,000 cubic feet.

Bullion

Gold for August delivery rose $24.60 to $1,961.70 an ounce. Silver for September delivery rose $1.03 to $24.31 an ounce.

Updated: 13 Jul 2023, 02:09 AM IST