Global stock markets soared to record highs on Wednesday, propelled by a surge in technology shares. Notably, AI chipmaker Nvidia ascended to become the world's most valuable company. Meanwhile, the U.S. dollar stalled following weak retail sales data, suggesting potential rate cuts later this year. In commodities, oil prices dipped slightly, with Brent crude futures down 0.1% to $85.07 per barrel, and U.S. West Texas Intermediate crude falling 0.3% to $81.35 per barrel.

Asia Pacific Markets
In the Asia Pacific region, the Japanese yen saw a modest strengthening, resulting in a 0.1% decline for the dollar to 157.70 yen, near last week's six-week highs. Over the past four and a half years, the yen has depreciated by a third against the dollar, largely due to the substantial interest rate differential between Japan and the United States. The minutes from the Bank of Japan's April policy meeting revealed discussions among policymakers about the impact of a weak yen on prices. Some policymakers indicated the possibility of raising interest rates sooner than expected if inflation surpasses targets.

European Markets
In Europe, the British pound edged higher following data indicating that British inflation had returned to the Bank of England's 2% target in May for the first time since 2021. This decline in inflation is a positive development for both Prime Minister Rishi Sunak and the Bank of England. However, it is unlikely to reverse Sunak's political fortunes ahead of next month's election or prompt a rate cut by the Bank of England on Thursday. Sterling, down about 0.2% for the month, rose 0.1% to $1.2722. The euro remained mostly steady at $1.073, despite being down 1% in June.

American Markets
In the U.S., retail sales showed minimal growth in May, with significant downward revisions for April's figures, suggesting a sluggish economic performance in the second quarter. This data increased expectations for a rate cut in September, with traders now pricing in a 67% chance of easing, up from 61% the previous day, according to the CME data.
With U.S. markets closed on Wednesday, trading activity is expected to remain subdued.