World shares rise as US inflation cools and tariff pause boosts markets

Global markets gain after U.S. inflation data cools and a tariff pause adds relief to investors.

World shares rise as US inflation cools and tariff pause boosts markets

Shares charged higher in Europe and Asia as U.S. stocks hit new records, helped by cooler inflation readings and relief that the long running tariff dispute with China may be easing. Tokyo’s Nikkei rose to another high while Europe’s main indexes advanced, with Germany’s DAX up and Paris’ CAC 40 marginally higher. The S&P 500 and Nasdaq in the United States closed at fresh records as traders priced in room for possible rate cuts by the Federal Reserve later this year.

Analysts say the rally reflects a blend of policy relief and hopes for stable liquidity. Yet the gains sit on shifting ground: a 90 day extension on tariffs reduces near term risk but does not settle the underlying dispute, and inflation trends remain a key test for the Fed. If inflation reaccelerates or tariff talks falter, markets could reprice quickly and unevenly across regions that rely on global supply chains.

Highlights

Policy clarity and fresh data will shape the next leg of the rally.