European stocks rise.
European stocks climbed higher Wednesday, tracking gains on Wall Street overnight after mild U.S. inflation data raised expectations of easier monetary policy next month.
At 03:05 ET (07:05 GMT), the DAX index in Germany climbed 0.4%, the CAC 40 in France gained 0.3% and the FTSE 100 in the U.K. rose 0.2%.
Positive global sentiment
Global sentiment received a boost on Tuesday, after the U.S. consumer price index rose just 0.2% in July, an annual increase of 2.7%, an increase that has been seen as mild enough to support expectations of a September rate cut.
Markets are now pricing in nearly a 94% probability of a 25 basis point cut next month, according to CME’s Fedwatch tool, up from nearly 86% a day ago and about 57% a month earlier.
This resulted in the broad-based S&P 500 and the tech-heavy Nasdaq Composite close at fresh record highs on Wall Street.
This positive tone continued in Asia, with Japan’s Nikkei index also posting a record peak, and has carried on in Europe.
In Europe, German consumer prices were confirmed as having grown 0.3% on the month in July, an annual increase of 2.0%, suggesting that inflation remains under control in the eurozone’s dominant economy.
Ether price near $4,861 record high.
Ether surged to near record highs on Wednesday amid a flurry of buying as corporate entities began stockpiling the world no.2 crypto in a manner similar to Bitcoin.
Ether rose as much as 8.5% to $4,683.0, coming within spitting distance of a $4,861 record high hit in November 2021.
Several U.S.-listed companies outlined plans to increase their Ether holdings this week, amid growing adoption of a Bitcoin buying strategy popularized by Michael Saylor’s MicroStrategy Incorporated (NASDAQ:MSTR).
Microstrategy (now Strategy), the world’s biggest corporate Bitcoin holder, raised billions through share issuances, which it used largely to fund its Bitcoin purchases in the last two years.
Oil steady as market awaits inventory data.
Oil prices were little changed on Wednesday as investors awaited U.S. inventory data, while eyeing an upcoming meeting between U.S. President Donald Trump and Russian President Vladimir Putin.
Brent crude futures dipped 3 cents, or 0.05%, to $66.09 a barrel at 0711 GMT, while U.S. West Texas Intermediate crude futures edged down 8 cents, or 0.13%, at $63.09. Both contracts settled lower on Tuesday.
Trump and Putin are due to meet in Alaska on Friday to discuss ending Russia’s war in Ukraine that has shaken oil markets since February 2022.
Oil investors are in a “wait-and-see mode” ahead of the meeting, said ING commodity strategists.
“The outcome could remove some of the sanction risk hanging over the market,” the ING strategists added.
Investors also awaited further cues after an industry report showed U.S. crude stockpiles climbed last week.
Crude inventories in the United States, the world’s biggest oil consumer, rose by 1.52 million barrels last week, market sources said, citing American Petroleum Institute figures on Tuesday. Gasoline inventories dropped while distillate inventories gained slightly. [API/S]
Should the U.S. Energy Information Administration data later on Wednesday also show a decline, it could indicate that consumption during the summer driving season has peaked and refiners are easing back their runs. The driving season typically runs from the Memorial Day holiday at the end of May to the Labor Day holiday in early September.
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