Global equities surged to a record high in anticipation of a US inflation report that could signal the Federal Reserve’s future interest rate decisions.
The MSCI All Country World Index increased by 0.1% on Wednesday, following an all-time high in the previous session. The index has climbed nearly 6% since its April low, buoyed by improved risk sentiment as the US dollar’s rally lost steam and Chinese equities rebounded.
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Investors are optimistic ahead of the upcoming report, which is expected to show a moderation in US core inflation for the first time in six months. This expectation is overshadowing Fed Chair Jerome Powell’s assessment that interest rates may need to stay elevated longer to combat inflation.
A similar rise in global equities occurred in March, ahead of US inflation data, before being disrupted by a hawkish Fed stance and the Iran-Israel conflict.
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