Global equities reach historic peak ahead of US CPI report

Global equities reached a historic peak before the upcoming US inflation report, anticipated to provide insights into the Federal Reserve‘s stance on interest rates, Bloomberg reported.

On Wednesday, the MSCI All Country World Index inched up by 0.1 per cent, following a previous session’s record-breaking close. Since hitting a low point in April, the index has surged by almost 6 per cent, buoyed by improving risk sentiment as the US dollar’s ascent stalled and Chinese stocks bounced back.

Investor optimism is mounting ahead of Wednesday’s report, expected to reveal a probable moderation in underlying US inflation for April, marking the first decline in six months.

These expectations outweigh concerns raised by Fed Chair Jerome Powell, who suggested that interest rates might need to remain elevated for an extended period to mitigate inflationary pressures.

Similarly, global equities experienced a surge in March before the US inflation data release, only to be stalled by a hawkish Fed stance and geopolitical tensions.