Global stock markets experienced a significant upswing on August 13, 2025, driven by the release of U.S. inflation figures for July that indicated a modest monthly increase. This data has amplified expectations for a Federal Reserve interest rate cut in September, sending positive ripples across international markets.
Asian markets demonstrated robust performance, with Hong Kong's Hang Seng Index climbing by 2.58% to close at 25,613.67. Japan's Nikkei 225 advanced 1.29%, and South Korea's Kospi concluded the day 1.07% higher. China's Shanghai Composite Index saw a gain of 0.48%. European bourses also mirrored this positive sentiment, with Germany's DAX index rising by 0.77% and France's CAC 40 increasing by 0.51%. London's FTSE 100 registered a gain of 0.19%.
In the United States, the Consumer Price Index (CPI) reported a 0.2% increase for July, with an annual rise of 2.7%. Core CPI, excluding food and energy, saw a 0.3% monthly increase and a 3.1% annual rise. Following this data, investors are pricing in a near-certain 99.9% probability of a quarter-point rate cut by the Federal Reserve at its September meeting, according to CME's FedWatch tool. This anticipation of more accommodative monetary policy has been a primary driver of the global market rally.
Further bolstering the optimistic outlook was the news of declining inflation in India, which reached an eight-year low of 1.55% in July. In the Euro Area, the Stock Market Index (EU50) rose by 0.87% to 5383 points. This upward trend reflects a broader global sentiment shift, driven by moderating inflation and the prospect of lower borrowing costs.