Global Celebration: Markets React to Post-CPI Data

Investors around the world are feeling optimistic as hopes rise that the U.S. inflation genie is back in the bottle. This confidence has led to a surge in stock purchases and riskier currency investments, causing the dollar to take a hit.

The positive sentiment on Wall Street has set the stage for gains in Asian markets, which in turn bode well for the European open. The FTSE and DAX are expected to reach fresh all-time highs as a result.

Later in the day, all eyes will be on the weekly American jobless claims data, as investors look for further evidence of the labor market cooling down. Last week’s unexpectedly weak reading has put a spotlight on this usually overlooked data set.

Central bank speakers will also be making appearances throughout the day, with four regional Fed heads and several ECB officials scheduled to speak. The market is currently anticipating two quarter-point interest rate hikes from the Federal Reserve this year, with the first hike fully priced for September and the possibility of a second hike in July.

In Europe, the data calendar is relatively light, with Norway’s GDP release being the highlight. Traders are closely watching the ECB and the Bank of England, with expectations that the ECB may be the first among major central banks to cut rates, possibly as soon as June. The BoE’s policy decision on June 20 is seen as a coin toss.

Overall, the market is buzzing with activity and key developments, such as earnings reports from BT and Deutsche Telecom, are expected to influence market movements on Thursday.