US Inflation Data Boosts Asian Equities, Eyes on PPI

Equities

The FTSE 100 saw an uplift, closing 0.8% higher, marking its best performance in over a month. Among the standout performers in the UK market was Rentokil Initial, which jumped 13.7%. This leap followed reports that Nelson Peltz's Trian Fund Management had taken a significant stake in the company.

In the broader UK market, the FTSE 250 also enjoyed gains, rising 1.1% and breaking a three-session losing streak. Another notable performer was Molten Ventures, which saw a substantial increase of 19.1%. However, not all news was positive. Legal & General saw a decline of 5.5% after announcing a £200 million share buyback and a merger of its investment units.

Shifting focus to the US, the S&P 500 and the Nasdaq Composite both reached record highs, with the former rising 0.9% and the latter by 1.5%. Among US companies, Oracle stood out with a notable rise of 13.3% following its optimistic revenue growth forecast for fiscal 2025.

Apple also captured attention with its shares climbing 2.9%, briefly reclaiming the title of the world's most valuable company from Microsoft.

Volume on US exchanges reached 11.80 billion shares, just shy of the 20-day trading average of 12.74 billion. Market breadth was positive, with advancing issues outnumbering decliners on the New York Stock Exchange by a ratio of 2.86-to-1 and on the Nasdaq by 1.78-to-1.

Forex & Commodities

Major currencies like the euro and the British pound make modest gains against a weaker US dollar, which was impacted by lower-than-expected US inflation data. The euro appreciated by 0.6%, surpassing its 200-day moving average, now valued at $1.0804. Meanwhile, the British pound also climbed by 0.5% overnight, reaching $1.2798. In contrast, the Japanese yen weakened slightly by about 0.2% as markets anticipated the upcoming Bank of Japan meeting, which could indicate a shift in monetary policy.

In the commodities market, gold trading is in focus as Vietnam considers allowing gold imports for the first time in over a decade, an initiative aimed at balancing local prices with global benchmarks.

Oil prices saw an increase, with Brent crude futures rising by 68 cents to $82.60 a barrel, and West Texas Intermediate crude advancing by 60 cents to $78.50. These gains were supported by ongoing tensions in the Middle East, though the potential delay in interest rate cuts by the Federal Reserve capped further rises.