Stock prices ASV And European Stocks rallied on Tuesday, but the US dollar fell as the pace of US inflation slowed more than expected, opening the door for the US Federal Reserve (FRS) to slow rate hikes.
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U.S. consumer prices rose 7.1% year over year in November, up from 7.7% in October, according to the U.S. Department of Labor. The consumer price index (CPI), which analysts had expected at a higher level, is a closely monitored indicator of inflation.
The FRS is expected to raise interest rates by 50 basis points on Wednesday, a smaller increase than the previous four times.
Lower inflation and lower interest rates are good for businesses.
Stock prices on European stock exchanges surged after the release of US inflation data. The major Wall Street indexes also rose.
The prospect of FRS curbing rate hikes weighed on the US dollar. The US dollar fell more than 1% against other major currencies, but that decline has since reversed.
The decline in the value of the US dollar has contributed to the increase in oil prices.
The Dow Jones Industrial Average rose 0.3% to 34,108.64 on Tuesday, the Standard & Poor’s 500 rose 0.7% to 4,019.65, and theNasdaq Composite” increased 1.0% to 11,256.81 points.
London’s FTSE 100 rose 0.8% to 7,502.89 on Tuesday, Frankfurt’s DAX extension 30 index rose 1.3% to 14,497.89 points, while the CAC 40 index of the Paris Stock Exchange rose 1.4% to 6,744.98 points.
from New York The price of WTI crude oil rose 0.7% to US$73.66 a barrel in electronic trading on the exchange on Tuesday. The price of “Brent” crude on the London Stock Exchange rose by 3.4% to 80.68 dollars a barrel.
The euro rose against the US dollar on Tuesday from $1.0539 to $1.0635 per euro, the British pound rose from $1.2268 to $1.2366 per pound and the US dollar fell against the Japanese yen from 137.66 to 135.59 yen per dollar. The euro rose against the British pound by 85.87 pence to 85.96 pence to the euro.
