Global financial markets rallied sharply on Thursday after new economic data revealed that inflation in major economies has declined more rapidly than analysts had predicted, raising hopes that central banks may soon begin cutting interest rates.
The benchmark indices in New York, London, and Tokyo all posted gains of between 2% and 4%, marking one of the best trading days of the year. The technology and consumer sectors led the advance, while bond yields fell sharply.
The consumer price index for the United States showed a year-over-year increase of just 2.4% last month, down from 3.1% the previous month and the lowest reading in three years.