The consumer price index (CPI) data reading, which measures the rate of inflation, in the United States (US) was seen to be slower than expected, sending Wall Street into a rally.
The data showed a flat reading in July after it rose as high as 1.3% the previous month as the dollar index weakened and Treasury yields pulled back from a fall.
Commenting John Augustine of Huntington National Bank, it has brought relief to investors and seen interest in equities return.
He explained that the CPI data strengthened investors' expectations for an increase of 50 basis points compared to 75 basis points by the Federal Reserve (Fed) during the next meeting.
The streak, the Wall Street market showed a significant rally with the Dow Jones Industrial up 1.63% at 33,309.51, the S&P 500 added 2.13% at 4,210.24 and the Nasdaq Composite jumped 2.89% at 12,854.81.
Based on these achievements, the Nasdaq is understood to have managed to surpass its recent closing low of 20.8% on June 16 and needs an additional 24.9% to reach the November record high to confirm a new rally.
In the European zone, the STOXX 600 gained 0.89% and the MSCI gauge of worldwide shares reached 1.80%.
The Asian session also started trading on a positive note with Australia's S&P/ASX 200 up 0.65%, South Korea's Kospi adding 1.17% and Kosdaq jumping 1.6%.
MSCI's broadest Asia Pacific index outside Japan was up 0.42%.
Currency flows saw the dollar weaken 1.072% while the Euro rose 0.87% to $1.03, the Yen strengthened 1.69% to $132.91 and Sterling jumped 1.13% to $1.2217.
Revealing Treasuries, the benchmark 10-year note was up 2/32 in price to yield 2.7901% from 2.797% while the 30-year bond was down 19/32 at 3.0359% from 3.005% and the 2-year note was up 4/32 at 3.2244% from 3.286%.
For commodities, oil prices rebounded from losses with US crude up 1.58% at $91.93 and Brent crude up 1.13% at $97.40.
Spot gold was down 0.2% at $1,790.80 an ounce on hopes the Fed would be less aggressive.
