Overseas Overnight Trading: Global Markets Rally on Fed Rate Cut Hopes, Tariff Pause
ST. LOUIS, MO (STL.News) Global Markets Rally – Global equity markets surged overnight into Wednesday, August 13, 2025, as investors digested softer-than-expected U.S. inflation data, renewed optimism for a Federal Reserve rate cut in September, and a fresh 90-day pause on additional tariffs for Chinese imports announced by President Donald Trump. From Tokyo to Frankfurt, market sentiment was overwhelmingly positive, with most major indices hitting new records or multi-month highs.
Global Markets Rally – U.S. Data Sparks Global Buying Frenzy
The rally began in the United States after Tuesday’s release of July’s Consumer Price Index (CPI), which rose 2.7% year-over-year, slightly below market forecasts. The report reinforced expectations that the Federal Reserve will pivot toward monetary easing, with traders now pricing in a 94% probability of a September rate cut.
Treasury Secretary Scott Bessent added fuel to the optimism by publicly advocating for a half-point cut at the next Federal Open Market Committee meeting. The dovish tone pushed Wall Street higher, with the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all closing at record highs before overseas markets opened.
Global Markets Rally – Asian Markets Lead the Charge
Asia followed Wall Street’s lead, with a broad rally across the region.
- Japan’s Nikkei 225 jumped past the 43,000 mark for the first time in history, signaling strong investor confidence. The Topix also notched record highs, buoyed by improving corporate sentiment and easing wholesale inflation.
- Hong Kong’s Hang Seng Index surged nearly 2.6%, supported by technology and real estate stocks, as optimism grew over the U.S.–China tariff truce.
- China’s mainland markets advanced on hopes the trade pause will allow for more constructive negotiations, potentially reducing export pressure on manufacturers.
- South Korea’s Kospi and Taiwan’s Taiex both climbed sharply, led by gains in semiconductor and electronics exporters.
- Australia was the lone underperformer in the region, with its benchmark index slipping due to disappointing earnings from major banks.
The MSCI All Country World Index —
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