(Updates to U.S. close)<\/p>\n
* CPI data shows inflation moderating in July<\/p>\n
* MSCI all-country index hits record high<\/p>\n
* S&P500, Dow Jones Industrial close at records<\/p>\n
* 10-year Treasury yields fall after strong auction<\/p>\n
* Oil gains as White House says not calling for hike<\/p>\n
NEW YORK, Aug 11 (Reuters) – Global shares hit record highs Wednesday after data showed U.S. consumer price increases slowed in July, easing concerns that the Federal Reserve will imminently signal a scaling back of bond purchases.<\/p>\n
The data showed tentative signs inflation had peaked as supply-chain disruptions work their way through the U.S. economy.<\/p>\n
\u201cThis is a more moderate reading than expected, especially on the core,\u201d said Gennadiy Goldberg, an interest rate strategist at TD Securities in New York.<\/p>\n
Speculation is growing that Fed Chair Jerome Powell will signal timings on tapering stimulus at a meeting of central bankers in Jackson Hole, Wyoming, on Aug. 26-28.<\/p>\n
Stronger-than-expected inflation data may have fueled talk of an imminent slowing of the Fed\u2019s bond purchases, said Craig Erlam, senior market analyst at OANDA Europe.<\/p>\n
\u201cInstead, we can all breathe a little easier, albeit safe in the knowledge that tapering is still coming and it\u2019s likely to be announced next month,\u201d he said.<\/p>\n
U.S. nonfarm payrolls figures due in September could also influence tapering if they are particularly strong.<\/p>\n
The MSCI all-country index, a gauge of stocks across the globe, hit a record high and was last trading up 0.29%.<\/p>\n
The Dow Jones Industrial Average and S&P500 both closed at record highs, with sentiment boosted by U.S. lawmakers approving a trillion-dollar infrastructure package on Tuesday.<\/p>\n
The Dow Jones Industrial Average rose 220.23 points, or 0.62%, to 35,484.9, the S&P 500 gained 11.02 points, or 0.25%, to 4,447.77 and the Nasdaq Composite dropped 22.95 points, or 0.16%, to 14,765.14.<\/p>\n
European shares also hit record highs, clocking their longest winning streak in two months. The STOXX 600 index rose 0.4% to hit an all-time high for an eighth consecutive session.<\/p>\n
Oil gained on Wednesday, changing course after the Biden administration said it would not call on U.S. producers to increase crude output, and that efforts to increase OPEC production were a longer-range plan.<\/p>\n
U.S. crude oil futures settled at $69.25 per barrel, up 96 cents or 1.41%. Brent crude futures settled at $71.44 per barrel, up 81 cents or 1.15%.<\/p>\n
U.S. Treasury yields fell in choppy trading, following a strong 10-year note auction; 10-year yields fell from four-week peaks earlier in the session.<\/p>\n
Benchmark 10-year notes rose 4\/32 in price to yield 1.3287%, down from 1.342% late on Tuesday.<\/p>\n
The dollar index fell 0.198%, with the euro up 0.2% to $1.1742.<\/p>\n
Gold prices jumped following the inflation data.<\/p>\n
U.S. gold futures settled up 1.2% at $1,753.30.<\/p>\n
Spot gold added 1.4% to $1,752.25 an ounce. U.S. gold futures gained 1.26% to $1,750.50 an ounce.<\/p>\n
Asian shares had slipped as fears about further waves of the coronavirus dampened a positive lead from Tuesday\u2019s record close on Wall Street.<\/p>\n
MSCI\u2019s broadest index of Asia-Pacific shares outside Japan lost 0.3%.<\/p>\n
The Delta variant of the new coronavirus is spreading quickly in many Asian countries, raising fears about local restrictions on travel and other activity damaging the economic recovery.<\/p>\n