Stocks on both sides of the Atlantic set records as investors foresee interest rates moving in one direction: down.

Stocks hit new highs on both sides of the Atlantic as the inflation picture improved slightly.Spencer Platt/Getty ImagesInflation euphoria goes global

Stocks in Asia and parts of Europe rose on Thursday as investors bet that new data showing inflation easing would finally persuade central bankers to lower interest rates from multidecade highs. The rally has pushed stock indexes on both sides of the Atlantic into record territory.

Another test comes on Thursday when Walmart, a bellwether for U.S. consumer sentiment, reports quarterly results.

The market moves follow Wednesday’s Consumer Price Index report, which came in better than expected. The data showed that so-called core inflation, which strips out volatile food and fuel costs, rose by 3.6 percent on an annual basis last month,

Keep reading this article on Andrew Ross Sorkin – Author New York Times.

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