Global stocks market recorded fresh momentum on Thursday as European and Asian stocks climbed in anticipation of key US inflation data and the European Central Bank’s (ECB) monetary policy decision.
The movement comes at a crucial time for investors who are closely monitoring signals from central banks on the future path of interest rates.
The US dollar strengthened against major currencies, including the euro and yen, while oil prices slipped due to rising global supply and easing fears of an immediate energy crisis.
Markets are awaiting the US Consumer Price Index (CPI) report, scheduled for release later Thursday.
This comes a day after official figures showed that producer prices had declined, reinforcing expectations that inflationary pressures in the world’s largest economy are easing.
Combined with recent weak US employment data, analysts predict the Federal Reserve will move to cut interest rates before the end of 2025.
Some even suggest the possibility of a more aggressive rate cut in September if inflation comes in softer than forecast.
“A softer-than-expected set of numbers could fuel bets of a jumbo Fed cut next week to support a weakening jobs market,” explained Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
The Federal Reserve has maintained a cautious stance throughout 2025, balancing efforts to cool inflation while avoiding deeper strain on the labor market.
Thursday’s CPI data could tip the balance toward a more accommodative stance.
Meanwhile, the European Central Bank is widely expected to keep its benchmark interest rate steady at 2 per cent for the second consecutive meeting.
The eurozone’s inflation outlook has moderated, and with trade tensions easing, the ECB appears in no rush to resume tightening.
Market watchers believe the ECB’s focus will remain on economic stability and growth support, particularly as the region continues to recover from sluggish output seen earlier in the year.
On Wall Street, the S&P 500 surged to a record high on Wednesday, driven by a sharp rally in Oracle shares, which jumped after the company projected significant revenue growth on the back of artificial intelligence investments.
In Asia, the Tokyo Stock Exchange hit an all-time high, with the Nikkei 225 closing at 44,372 points, boosted by a 10 per cent surge in SoftBank shares.
The Japanese conglomerate has been benefiting from strong gains in its tech investment portfolio, sparking renewed confidence in the region’s tech sector.
China’s Shanghai Composite Index also rose by 1.7 per cent, reflecting renewed investor optimism despite lingering property market concerns.
However, Hong Kong’s Hang Seng Index slipped by 0.4 per cent, weighed down by profit-taking in property and tech stocks.
Oil markets moved lower on Thursday after the International Energy Agency (IEA) confirmed that global oil supply hit a record high in August.
Increased production from OPEC+ members and non-aligned producers has created a looming surplus, offsetting the impact of geopolitical tensions in the Middle East and the ongoing Russia-Ukraine war.
Brent crude slipped to $67.02 per barrel, while West Texas Intermediate (WTI) dropped to $63.14, reflecting investor concerns that oversupply could cap prices in the near term.
Key Market Figures (as of Thursday)
London (FTSE 100): Up 0.5% at 9,274.16 points
Paris (CAC 40): Up 0.8% at 7,825.89 points
Frankfurt (DAX): Up 0.2% at 23,674.47 points
Tokyo (Nikkei 225): Up 1.2% at 44,372.50 (record close)
Shanghai Composite: Up 1.7% at 3,875.31
Hong Kong (Hang Seng): Down 0.4% at 26,086.32
Dow Jones (New York): Down 0.5% at 45,490.92
Currencies:
Euro/Dollar at $1.1681 (down from $1.1696)
Pound/Dollar at $1.3504 (down from $1.3528)
Dollar/Yen at 147.96 (up from 147.40)
With global equities showing resilience and central banks preparing to adjust policy, analysts suggest that investor sentiment remains cautiously optimistic.
A dovish shift by the Fed could provide further momentum to equity markets, while the ECB’s steady stance offers stability to the eurozone.
For now, traders are bracing for Thursday’s US CPI report — the deciding factor that could shape the trajectory of financial markets in the weeks ahead.