New York – Global stocks edged higher on Friday, as investors welcomed data showing that U.S. inflation had slowed in June. The MSCI World Equity index was little changed on Friday, staying at its peak for the year and its highest level since early 2022. The index was up 0.1% at 626.92 points.
U.S. consumer prices grew at their slowest pace in more than two years in June, as gasoline prices fell and other categories moderated. The data helped to ease concerns that the Federal Reserve would need to raise interest rates more aggressively to combat inflation.
“The market is taking the view that the Fed is going to be more measured in its tightening,” said Michael Brown, head of market intelligence at Caxton Associates. “That’s giving a bit of a boost to risk assets.”
The U.S. dollar fell against a basket of currencies, as investors pared bets on the pace of Fed tightening. The dollar index was down 0.2% at 106.39.
U.S. Treasury yields rose slightly, but remained below recent highs. The yield on the 10-year Treasury note was up 2 basis points at 3.82%.
European stocks were also higher, with the pan-European STOXX 600 index up 0.2%.
Investors will be looking ahead to the release of U.S. jobs data on Friday for further clues on the health of the economy.