Labor Department data showed on Tuesday slowing inflation In America, stocks rose around the world, and the main US stock indices recorded strong gains, at the beginning of the day, before sacrificing a large percentage of them, in anticipation of surprises. Fed the next day.
And following rising by more than six hundred points, the Dow Jones Industrial Average ended the day’s trading following losing nearly five hundred of them, and the “S&P 500” index added three quarters of a percentage point to its value, while the Nasdaq index rose 1 percent, despite achieving gains of more than 3.5 percent in The beginning of the session.
The consumer price index rose in America in November at an annual rate of 7.1 percent, to record lowest rate of rise Since last year, in what seemed to be a green light for the Federal Reserve to moderate its restrictive policies, and protect the country from entering into a… recession.
The index rose by only 0.1% compared to the previous month, while the index core inflationwhich excludes highly volatile food and energy prices, a monthly increase of 0.2 percent, and an annual increase of 6 percent, which are rates not seen in more than a year.
And I benefited European stocks From US inflation data, as the European Stoxx 600 index rose 1.3 percent, following the US data reinforced investor expectations that major central banks around the world will head towards easing the pace of rate hikes during the coming period.
The bank meets European Central to decide on the interest rate next Thursday, and so does Central Bank of England. Final data confirmed that consumer prices in Germany rose 11.3 percent year-on-year in November, following rising 11.6 percent in October.
Oil futures contracts ended the day with strong gains, as Brent crude futures rose to $80.68 a barrel, an increase of 3.5 percent, while US West Texas crude futures rose to $75.39 a barrel, an increase of nearly three percent.
Both benchmarks posted their biggest daily gains in more than five weeks.
The market was supported by fears of supply disruptions triggered by factors including the continued closure of the Keystone crude oil pipeline from Canada to the United States following a major leak last week.
On the other hand, the dollar index fell following the US inflation data showed increasing chances of the US Federal Reserve raising interest rates at tomorrow’s meeting by no more than 50 basis points, which supported the demand for other currencies.