Global stocks rose on Tuesday after US consumer price figures showed inflation in the world’s biggest economy continued to ease in November, bolstering the Federal Reserve’s arguments for a smaller interest rate rise when it meets this week.
Annual consumer price growth in the US slowed to 7.1 per cent in November, down from 7.7 per cent in October and the smallest 12-month increase since December 2021. Month-on-month inflation ticked up 0.1 per cent, less than the 0.3 per cent increase forecast by economists.
The benchmark S&P 500 closed 0.7 per cent higher and the tech-heavy Nasdaq Composite gained 1.1 per cent. Both indices jumped more than 2 per cent when Wall Street opened an hour after the inflation figures were released. Europe’s Stoxx 600 added 1.3 per cent and London’s FTSE 100 rose 0.8 per cent.