Markets rise on cooling inflation data in major economies

Global equities advanced on Wednesday after inflation prints in three major economies came in below consensus, reinforcing expectations that central banks will begin easing in the autumn. The broad global index rose 1.3 per cent, with rate-sensitive sectors leading the move.

Core goods prices have now decelerated for five consecutive months, and services inflation — the stickier component that policymakers watch most closely — showed its first meaningful cooling this cycle. Futures markets moved to price two quarter-point cuts by year-end, up from one a week ago.

Strategists cautioned that the rally rests on a narrow data window. Energy base effects reverse in the fourth quarter, and wage growth remains above levels consistent with target inflation in most advanced economies.