LONDON, SYDNEY—Global stocks and government bonds rallied on Wednesday as good news on UK inflation added to a picture of cooling price pressures, although the data slammed the brakes on sterling’s recent winning streak.
Headline British consumer price inflation fell to 7.9 percent year-on-year in June, against expectations for 8.2 percent, in the latest downside surprise for a major economy after more than 18 months of central banks cranking interest rates higher.
Later in the day, final eurozone inflation data for June confirmed that the annual rate of price increases in the region declined to 5.5 percent.
The trend signalled “those lagged effects of higher rates and tighter monetary policy are coming home to roost,” said Eren Osman, managing director of wealth management at Arbuthnot Latham….