Global stock prices rose on Thursday as investors reacted to data showing a slowdown in US consumer price inflation, which may give the US Federal Reserve (FRS) an opportunity to slow rate hikes.
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Share prices were also supported by growing optimism about the reopening of China’s economy.
Europe’s major stock market indices reached their highest levels in several months. The Paris Stock Exchange index temporarily exceeded the 7,000-point mark for the first time since last February, while the Frankfurt Stock Exchange index closed the trading session above 15,000 points for the first time since last February.
After inflation in the US rose to the highest levels in decades last year, investors awaited the latest data on the US Consumer Price Index (CPI), which may indicate the FRS’s next move.
Data published by the US Ministry of Employment on Thursday show that annual inflation in the US decreased to 6.5% in December compared to 7.1% in November, thus registering the lowest level since October 2021, and the fall in inflation was recorded for the sixth month in a row.
Meanwhile, compared to the previous month, US consumer prices fell by 0.1% in December, following a 0.1% rise in November. However, excluding food and energy prices, the annual inflation in the US was 5.7% in December, while the monthly inflation was at the level of 0.3%.
“While the employment picture is still good, the FRS will be pleased to see the inflation outlook improving as well,” said Chris Beauchamp, chief market analyst at online trading platform IG.
Global oil prices rose on expectations of an increase in demand for energy resources in China, which ended its strict Covid-19 containment measures.
The Dow Jones Industrial Average rose 0.6% to 34,189.97 points on Thursday, the Standard & Poor’s 500 index rose 0.3% to 3,983.17 points, while the “Nasdaq Composite” increased by 0.6% to 11,001.10 points.
London’s FTSE 100 rose 0.9% to 7,794.04 on Thursday, Frankfurt’s DAX 30 rose 0.7% to 15,058.30 points, while the Paris Stock Exchange’s CAC 40 index rose 0.7% to 6,975.68 points.
WTI crude oil rose 1.3% to $78.39 a barrel in electronic trading on the New York Stock Exchange on Thursday. “Brent” crude oil price on the London Stock Exchange rose by 1.6% to 84.03 dollars per barrel.
The euro rose against the US dollar on Thursday from $1.0757 to $1.0854 per euro, the British pound against the US dollar rose from $1.2146 to $1.2214 per pound and the US dollar against the Japanese yen eased from 132.45 to 129.27 yen per dollar. The euro rose against the British pound from 88.56 to 88.84 pence per euro.
