European and Asian markets rise after CPI report released in the US – Market News – May 17, 2024

European futures, Asian stock indices, and regional currencies began to rise following the release of the US consumer inflation report and growing expectations of an early interest rate cut by the Federal Reserve.

Core consumer inflation in the United States has hit a three-year low over the past year, raising hopes for easier monetary policy from the Federal Reserve, according to the report.

The dollar index fell to a one-month low as the greenback weakened against all major world currencies in the top 10. The Euro Stoxx 50 futures contract rose 0.3% and Wall Street stock indexes hit record highs on Wednesday. Similar dynamics were observed in Asian markets.

Among Asian currencies, it is worth noting the rise of the Korean won, which traded at its highest level against the dollar last week.

The Australian dollar fell after the country’s unemployment rate in April fell short of analysts’ expectations.

According to swap market analysis, the Federal Reserve’s interest rate cuts are expected to be cut twice in 2024, compared to one cut expected earlier this year. General data on core inflation gives the Fed an opportunity to consider an early interest rate cut, and markets tend to believe this could happen as early as September of this year.