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Global stocks hit record highs on Nvidia rally


MSCI’s All-World index was 0.2% higher at 805.13, having traded at an all-time high of 805.43

Global stocks reached record highs on Wednesday, driven by a rally in tech shares that has made AI chipmaker Nvidia the world’s most valuable company, while the dollar stalled as soft U.S. retail sales data indicated rates could drop this year.

MSCI’s All-World index was 0.2% higher at 805.13, having traded at an all-time high of 805.43.

A surge in tech stocks on Wall Street overnight that allowed Nvidia to topple Microsoft as the world’s most valuable company carried on through Asian hours, sending regional tech stocks up 2% to record highs.

U.S. stock index futures also gained, with those on the tech-heavy Nasdaq 100 up 0.2% and those on the S&P 500 up 0.1%. In Europe, the STOXX 600 held steady.

The pound rose after data showed British inflation returned to the BoE’s 2% target in May for the first time since 2021.

The drop in inflation will be welcomed by both Prime Minister Rishi Sunak and the BoE.

With UK inflation at 2% and inflation in the U.S. – if you take personal consumption expenditure (PCE) – at 2.7%, this is hardly disruptive, Lombard Odier economist Samy Chaar said.

It gives credibility to the idea that the BoE act in August at the latest and then that should be followed by the Fed in September, he added.

Sterling, which is nearly 0.2% lower so far this month, last fetched $1.2722, up 0.1%, while the euro was mostly stable at $1.073, but still 1% lower in June.

The euro has been under pressure in the wake of French President Emmanuel Macron calling for a snap election after his ruling centrist party was defeated by the far right in the European Parliament elections.

U.S. markets are shut on Wednesday, which will likely result in muted trading throughout the day.

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