Stock prices in the US and Europe rose on Tuesday, boosted by upbeat inflation data in the US.
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Investor sentiment was also boosted by China’s measures to support its economy.
The US dollar continued its decline after data showed US wholesale price inflation slowed in October, raising expectations that the Federal Reserve could slow rate hikes.
Data released on Tuesday showed U.S. producer prices rose 8% in October from a year earlier, a smaller increase than in September, when they rose 8.4% year on year.
“While FRS officials are trying not to go along with the narrative that inflation may have already peaked, the numbers speak for themselves,” said Michael Hewson, market analyst at CMC Markets.
The increase in share prices on the euro area stock exchanges was facilitated by the fact that the ZEW index, which reflects the level of confidence of German investors, rose to minus 36.7 points in November, compared to minus 59.2 points in October, thus recording the highest level in five months.
The London Stock Exchange index fell due to the increase in the value of the British pound.
The Dow Jones Industrial Average was up 0.2% to 33,592.92 on Tuesday, the Standard & Poor’s 500 was up 0.9% to 3,991.73 and the Nasdaq Composite was up 1.5% to 11,358.41 points.
London’s FTSE 100 was down 0.2% to 7,369.44 on Tuesday, Frankfurt’s DAX 30 was up 0.5% to 14,378.51, and Paris’ CAC 40 was up 0.5% to 6,641. 66 points.
WTI crude oil rose 1.22% to $86.92 a barrel in electronic trading on the New York Stock Exchange on Tuesday. The price of “Brent” crude on the London Stock Exchange rose by 0.8% to 93.86 dollars a barrel.
The euro rose against the US dollar on Tuesday from $1.0331 to $1.0354 per euro, the British pound against the US dollar rose from $1.1751 to $1.1871 per pound and the US dollar against the Japanese yen fell from 139.90 to 139.16 yen per dollar. The euro fell against the British pound from 87.89 to 87.18 pence to the euro.
