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NEW YORK – A gauge of global stock markets hit record highs on Tuesday, led by the surge in tech-related stocks, as Treasury bill yields eased after consumer price data in states United for March have shown that the pace of inflation is not increasing wildly.
The consumer price index rose 0.6%, the largest increase since August 2012, as the rise in vaccinations and fiscal stimulus triggered pent-up demand. But the data is unlikely to change Federal Reserve Chairman Jerome Powell’s view that higher inflation in the coming months will be transient.
“We’re just going to have a temporary price spike, but there won’t be any structural inflation that’s going to last,” said Carlo Franchini, head of institutional clients at Banca Ifigest SpA in Milan. “The Fed’s comments continue to be conciliatory.”
The dollar fell and gold prices, a traditional hedge against inflation, rebounded from their lowest level in more than a week. Stock markets have taken the data in stride, especially technology-intensive indices whose stocks may be affected by rising costs of debt.
MSCI’s stock performance indicator in 50 countries rose 0.34% to an all-time high, led by gains from Apple Inc, Microsoft Corp and Amazon.com Inc, the top three stocks in the benchmark.