► Global stock markets rose as investors stuck to their optimistic expectations for US interest-rate cuts this year. US futures are little changed after recovering a sharp sell-off following hotter-than-expected US inflation data. Asian equities rallied, led by a robust performance in Japan. The possibility of a wider war in the Middle East, coupled with political unrest in Ecuador and Poland, adds complexity to the market outlook.
► In Europe, the Stoxx 600 index advanced by 0.8%, fueled mostly by optimism that rake hikes will be happen even with signs of more stubborn inflation. Energy companies like TotalEnergies and Shell contributed to this rise as well. ECB President Christine Lagarde's recent comments suggest potential rate declines once the bank’s 2% inflation goal is in sight. In the UK, GDP and manufacturing production showed growth. Spanish inflation decreased while French inflation increased. Germany's DAX and France's CAC also moved up.
► US stock futures remain unchanged. Yesterday’s US inflation data came in higher than expected, where core consumer prices rose to 3.9% over the expected 3.8%. US treasuries gained after an initial sharp drop: the USD was unable to keep early gains. The producer price index report and earnings from JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo are highly anticipated today.
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