Description

▸ Wall Street climbs as US infla­tion comes in below ana­lyst expect­a­tions

▸ Dol­lar slips amid increas­ing bets on declin­ing interest rates

▸ Stocks in Asia rally after Trump extends trade war truce with China

Wall Street rose and the dol­lar fell yes­ter­day after head­line infla­tion in the world's biggest eco­nomy came in below ana­lysts' expect­a­tions in July, des­pite Pres­id­ent Don­ald Trump's aggress­ive tar­iffs prompt­ing warn­ings of con­sumer price rises.

The US con­sumer price index held steady at 2.7 per cent, slightly below the 2.8 per cent expec­ted by ana­lysts sur­veyed by Bloomberg.

The read­ing promp­ted traders to increase their bets on a rate cut from the US Fed­eral Reserve next month.

Swaps mar­kets moved to almost entirely price in a quarter-point cut at the Fed's Septem­ber meet­ing com­pared with an 85 per cent prob­ab­il­ity before the infla­tion data was released.