Global stocks inch up, oil steady before US CPI

Global stocks maintained recent gains on Wednesday following U.S. inflation data, which met expectations, while oil prices ticked upward. The Consumer Price Index increased by 0.1% last month, following a 0.4% decline in June, in line with a Reuters poll of economists and analysts. Annual inflation slowed to 3.4% from 3.5% the previous month.

As Federal Reserve Chair Kevin Warsh aims to avoid extensive forward guidance, there should be a positive market response to these figures, according to Quilter Cheviot head of fixed interest research, Richard Carter. Traders were betting on a slight likelihood of a rate hold at the upcoming meeting, with markets estimating a 55% chance that the Federal Reserve would maintain its policy rate within the 3.50% to 3.75% range.

U.S. stock futures, including the S&P 500 e-minis, rose by 0.4%, holding onto gains following the data. Nasdaq futures climbed 0.8%, buoyed by positive results from AI cloud company CoreWeave after a Tuesday close. European stock indexes were also up, with the STOXX 600 gaining around 0.2%. Major stock indexes in Frankfurt, Paris, and London saw gains between 0.1% to 0.4%. Asian stocks rose by 0.9%, led by South Korea's Kospi which surged 3.7% and Japanese and Taiwanese stocks that climbed by nearly 1%.

Despite ongoing negotiations aimed at ending the Iran war and reopening the Strait of Hormuz to shipping, markets remain calm. The lack of progress in talks has not significantly impacted investor sentiment. U.S. crude oil prices increased by 0.7% to $83.71 a barrel, while Brent crude rose by 0.3% to $89.19 per barrel. Both benchmarks settled more than $1 higher on Tuesday, marking their highest closes since July 31.

In currency markets, the dollar index dropped to 99.69, while the euro and sterling both experienced slight gains following the U.S. inflation data. The yen strengthened by 0.3% to 158.81 per dollar, though it remained below last week's high of 155.20. Spot gold prices increased by 1.4% to $4,428 an ounce, while spot silver jumped by 2.9% to $66.47 an ounce.