Stock markets climb as US inflation rate drops
The Peninsula
London: Major stock markets mainly rose Friday as traders welcomed data showing US inflation is slowing, firming expectations for the Federal Reserve...
London: Major stock markets mainly rose Friday as traders welcomed data showing US inflation is slowing, firming expectations for the Federal Reserve to start cutting interest rates in September.
Wall Street's three main indices were all up in early deals at the end of a volatile week during which tech stocks and other sectors were rocked by disappointing earnings.
The Fed's preferred measure of US inflation -- the personal consumption expenditures (PCE) price index -- fell to 2.5 percent on an annual basis in June, from 2.6 percent in May.
The reading "should strengthen the likelihood of a September rate cut, with more to follow before year-end," said market analyst David Morrison at Trade Nation.
The core PCE price index that excludes volatile food and energy prices held steady at 2.6 percent.
