The broad market rally on Wall Street lifted indexes a day after the Federal Reserve lower rates by a jumbo-sized cut that surprised many. The Fed's preemptive move to shore up the faltering labor market may end up keeping inflation higher for longer. Markets in Europe and Asia gained between 1% and 2% following the Fed's big rate cut.
Wall Street indexes attempted to rebound for the second consecutive day after the annualized producer price inflation eased for the second month in a row. European markets jumped after the ECB delivered the widely anticipated rate cut. Sentiment rebounded among large Japanese manufacturing companies in the third quarter. India's consumer price inflation held nearly steady.
The latest U.S. consumer price inflation update confirmed the ongoing trend of rising housing costs and well-entrenched service inflation, signaling a tough road ahead for policymakers. The European Central Bank is expected to lower its reference rate on Thursday. China and Japan indexes are likely to test this year's lows in the coming weeks.