After the US inflation report, global shares were mixed in volatile trading

Global shares had a mixed day of trading on Thursday, following a report that showed that inflation in the US was cooling, despite it still being too high.

The report caused traders to increase the probability that the Federal Reserve will hold rates steady in June to almost 94%. The news caused France’s CAC 40 to rise 0.6% in early trading, Germany’s DAX to edge up 0.1%, and the FTSE 100 in Britain to remain unchanged. In the US, the Dow and S&P 500 were both set to drift higher.

The Chinese economy remains a concern, particularly for the Asian region, with trade data released on Tuesday causing worries about it heading into a deflationary period. Additionally, some corners of the bond market are swinging on concerns about the US government inching closer to a possible default on its debt. Economists have warned that a default could be catastrophic for the economy and financial markets.

In currency trading, the US dollar was little changed, while in energy trading, benchmark US crude rose to $73.39 a barrel, and Brent crude added to $77.31 a barrel, the international standard. The Bank of England’s decision on interest rates was also being closely watched, with analysts predicting a rise of 25bp but the door being left open for further hikes.