On Thursday, January 17, 2025, global stock markets continued to climb, driven by slowing inflation in the U.S., which bolstered expectations of a Federal Reserve interest rate cut. Positive financial reports from major companies further fueled investors’ appetite for risk, according to Reuters.
Jim Reid, Head of Macro Research at Deutsche Bank, highlighted that the decline in inflation in the U.S. and the U.K. brought noticeable relief to global financial markets. The European STOXX 600 index gained 0.97%, reaching a one-month high. Asian stock markets also closed the day with solid growth. Meanwhile, U.S. indices, which saw a rally on Wednesday, paused and ended the day slightly lower.
On the currency markets, the Japanese yen strengthened amid expectations of a Bank of Japan interest rate hike. The British pound, on the other hand, weakened due to disappointing GDP growth figures in the U.K., exacerbating concerns over the country’s economic outlook.
Brent crude oil prices fell to $81.28 per barrel following news of a ceasefire between Israel and Hamas, which eased geopolitical tensions in the region.
In the precious metals market, gold surged to a one-month high, reaching $2,746.60 per troy ounce. This was driven by shifting expectations regarding interest rates and a decline in U.S. Treasury yields, boosting gold’s appeal as a safe-haven asset.
Thus, the slowdown in U.S. inflation continues to support optimism in global markets. Investors, encouraged by improved macroeconomic indicators and strong corporate performance, view this as a signal for further investments. However, market participants remain closely monitoring economic data and central bank actions, which could influence the future trajectory of financial markets.
