Fed, BoE Rate-Cut Bets Shift on Inflation Data

US and UK core inflation trends remain moderate, with US companies absorbing tariff pressures and a softening labor market helping to contain price increases. BlackRock's CIO and market data indicate a 60% probability that the Federal Reserve will cut interest rates in September, while a July move is seen as unlikely. In the UK, inflation rose to 3.6% in June, but investors still expect the Bank of England to cut rates in August in response to economic slowdown concerns. Mixed US inflation data has led to cautious trading globally, with the FTSE 100 outperforming other European indices thanks to strength in miners and energy stocks. Asian markets are set for a subdued open as traders reduce Fed rate-cut bets. Meanwhile, US tech stocks, particularly chipmakers, gained after news of resumed sales to China.