On Wednesday, August 12, 2026, global equities rose after U.S. inflation data showed a modest 0.1% increase in consumer prices for July, aligning with expectations. This mild inflation figure eased concerns about an imminent interest rate hike by the Federal Reserve, with money markets indicating roughly a 50% chance of a rate increase prior to the data release.

Robert Pavlik, senior portfolio manager at Dakota Wealth Management in Fairfield, Connecticut, said the data "relieves some of the concerns that the Fed is being pushed toward a rate hike due to inflation, which is being fueled by higher energy prices."

Meanwhile, oil prices fell after earlier climbing $1 during the session, as investors weighed lower global demand forecasts for 2026. The United States and Yemen's Iran-aligned Houthis reported separate ship attacks, contributing to geopolitical uncertainty. Despite this, analysts do not expect full traffic capacity through the Strait of Hormuz, which is seen as maintaining a floor on oil prices and sustaining energy-driven inflationary pressures in the near to medium term.

Dorian Carrell, head of multi-asset income at Schroders, described the situation as "a gradual but messy de-escalation."

Additionally, the Japanese yen weakened slightly by 0.07% to 159.39 per dollar, remaining below last week's high of 155.20 after suspected intervention efforts.

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