Global stocks up, as US CPI beats

Macroeconomic/ geopolitical developments

• U.S. equities hit new highs on Fed rate cut hopes, with the Dow, S&P 500, and Nasdaq all advancing, while gains in Europe, Japan, and China underscored broad global market strength.

• July CPI came in largely in line with forecasts, with headline inflation steady at 2.7% and core inflation rising to 3.1%, easing fears of a tariff-driven spike and boosting odds of a September Fed rate cut despite lingering risks from sticky services costs and hotter wholesale prices.

• A high-profile summit between Donald Trump and Vladimir Putin ended without a breakthrough, as Putin demanded control of Donetsk, Zelenskiy rejected the terms, and European allies vowed continued support for Ukraine.
• Investors will be watching Fed minutes, Powell’s Jackson Hole speech, global flash PMIs, key U.S. data, major retailer earnings, and any fallout from the Trump–Putin summit on Ukraine.

Global financial market developments

• US and global equity averages were higher, with US and Japanese indices at record levels.
• US and European bond yields were slightly lower on the week
• The US Dollar Index moved slightly lower for the week.
• Gold futures were down on the week.
• Oil futures prices were slightly lower for the week

Key this week

Central Bank Watch: This week’s key central bank events include the People’s Bank of China’s Interest Rate Decision and the release of the Federal Open Market Committee Minutes, both scheduled for Wednesday.

Macro Data Watch: It’s a relatively light week for macro data, with highlights including Canadian, UK, and EU CPI on Tuesday and Wednesday, Global Flash PMIs on Thursday, and Canadian and UK Retail Sales on Friday.

Steve Miley (The Market Chartist)

Editor in chief

Steve Miley is the Market Chartist and has 32 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Mar... Continued