In US economic data, the consumer price index (CPI) was flat in July (survey: +0.2%), but was up 8.5% over the year (survey: +8.7%). The core CPI (ex-food and energy) lifted 0.3% in July (survey: +0.5%) to be up 5.9% over the year (survey: +6.1%).
European sharemarkets advanced on Wednesday following the release of data showing a slower-than-expected rise in US inflation in July. The pan-European STOXX 600 index rose by 0.9%, its best session in nearly two weeks, with real estate shares up 3.6%. The German Dax index added 1.2% and the UK FTSE index gained 0.3%. In London trade, shares of Rio Tinto rose by 0.4% and BHP shares lifted 0.9%.
US sharemarkets climbed on Wednesday as softer-than-expected US inflation data fuelled trader bets that the US Federal Reserve could pivot to a smaller pace of interest rate hikes. Shares of Meta Platforms (+5.8%), Apple (+2.6%), Alphabet (+2.6%) and Amazon (+3.5%) all lifted. Tesla shares lifted 3.9% after it was revealed CEO Elon Musk had sold US$6.9 billion worth of shares in the electric vehicle maker to finance a potential deal for Twitter. Walt Disney was the best performer in the Dow Jones index, rising 4.0% ahead of its earnings result. The Dow closed up 535 points or 1.6%. The S&P 500 index gained 2.1% and the Nasdaq index climbed 361 points or 2.9%.
US treasuries were stronger on Wednesday (yields lower) as markets priced in a smaller US Federal Reserve interest rate hike in September as price pressures eased in July. The US Treasury sold US$35 billion of 10-year notes at a yield of 2.755% into solid demand. US 10-year yields fell by around 1 point to near 2.79%. And US 2- year yields declined by around 6 points to near 3.23%.
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Major currencies were firmer against the US dollar in European and US trade. The Euro rose from lows near US$1.0200 to highs near US$1.0367 and was near US$1.0300 at the US close. The Aussie dollar lifted from lows near US69.47 cents to highs near US71.08 cents and was near US70.80 cents at the US close. And the Japanese yen rose from near 135.10 yen per US dollar to JPY132.05 and was near JPY132.90 at the US close.
Global oil prices rose on Wednesday following the release of encouraging data on US gasoline demand. US crude inventories rose by 5.5 million barrels last week, ahead of analyst expectations for an increase of 73,000 barrels, according to the US government. But gasoline product supplied rose in the most recent week to 9.1 million barrels per day. The Brent crude price rose by US$1.09 or 1.1% to US$97.40 a barrel. And the US Nymex crude price gained US$1.43 or 1.6% to US$91.93 a barrel.
Base metal prices were mostly higher on Wednesday after data showed US inflation was weaker-than-expected in July. The US dollar eased, supporting commodity prices, with nickel up 4.3% and copper 1.3% higher. But aluminium fell by 0.2%.
The gold futures price rose by US$1.40 an ounce or 0.1% to US$1,813.70 an ounce. Spot gold was trading near US$1,791 an
ounce at the US close. And iron ore futures fell by just US1 cent or less than 0.1% to US$109.27 a tonne.
Ahead: In Australia, weekly payroll jobs and wages data is scheduled. US initial jobless claims and producer prices are due