Global stocks edged up and oil prices fell on Wednesday on hopes that the Strait of Hormuz could soon reopen, while investors awaited U.S. inflation data and Nvidia's earnings. Iran and Oman discussed a joint temporary navigational corridor through the strait and agreed to clear it of mines, boosting hopes for a breakthrough in the conflict that has roiled oil markets. Brent crude futures slid nearly 3% to $85.95 per barrel, helping push short-term bond yields lower, with the 2-year German yield at 2.771% and the U.S. 2-year at 4.195%. MSCI's world stocks index rose 0.1%, and Europe's STOXX 600 hit a one-week high. Markets now await the U.S. Personal Consumption Expenditures Price Index, with odds of a September rate hike dropping to 36% from 67% earlier this month. Nvidia is set to report second-quarter earnings after the close, with its shares up 0.3% in pre-market trading. Fixed income and currency markets have been under greater scrutiny since the U.S. Treasury expanded its debt buyback program, which shifted pressure to the dollar and revived the debasement trade, boosting gold and bitcoin.
