MSCI World Index falls 0.1% after a 13% quarterly gain, with softer euro zone inflation easing ECB rate hike expectations.
Global stocks edged lower on Wednesday, with the MSCI World Price Index slipping 0.1% in European afternoon trade. The decline follows a strong rally that drove the index up 13% in the second quarter, its best performance in nearly six years, fueled by gains in chipmakers and tech stocks.
Euro zone inflation slowed more than expected to 2.8% in June from 3.2% in May, undershooting forecasts of 3.0%. The softer data reduced pressure on the European Central Bank to raise rates further after its first hike in nearly three years last month. Traders trimmed bets on additional tightening, pricing in around 23 basis points of further hikes.
Investors are also focused on upcoming remarks from Fed Chair Kevin Warsh, while oil prices held near pre-war levels amid ongoing U.S.-Iran negotiations. The yen’s slide to 40-year lows against the dollar kept traders alert for potential Japanese intervention.