European futures, Asian stock indexes and regional currencies began to rise after the publication of a report on consumer inflation in the United States and strengthening hopes for an early Federal Reserve rate cut. The report showed that core consumer inflation in the United States over the past year was at its lowest level in three years, which fueled hopes for a softer monetary policy by the Fed. The dollar index fell to a one-month low as the dollar weakened against all major world currencies from the top 10. The Euro Stoxx 50 futures contract rose 0.3%, and Wall Street stock indexes reached new highs on Wednesday. Similar dynamics were observed in Asian markets. Among Asian currencies, it is worth noting the growth of the Korean won, while the yen was trading at its highest level in the last week against the dollar. The Australian dollar declined after the unemployment rate in the country in April did not meet analysts' expectations. An analysis of the swap market shows that two Fed interest rate cuts are now expected in 2024, as opposed to one reduction expected earlier this year. The general data on core inflation gives the Fed an opportunity to consider an earlier rate cut, and the market is inclined to believe that this could happen as early as September this year.
