{"id":66498,"date":"2026-08-13T20:38:18","date_gmt":"2026-08-14T00:38:18","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-rally-on-softer-inflation-as-geopolitical-tensions-persist\/66498\/"},"modified":"2026-08-13T20:38:18","modified_gmt":"2026-08-14T00:38:18","slug":"global-markets-rally-on-softer-inflation-as-geopolitical-tensions-persist","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-rally-on-softer-inflation-as-geopolitical-tensions-persist\/66498\/","title":{"rendered":"Global Markets Rally on Softer Inflation as Geopolitical Tensions Persist"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-rally-on-softer-inflation-as-geopolitical-tensions-persist\/66498\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-rally-on-softer-inflation-as-geopolitical-tensions-persist\/66498\/#Equities_Tech_Strength_Drives_Global_Gains\" >Equities: Tech Strength Drives Global Gains<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-rally-on-softer-inflation-as-geopolitical-tensions-persist\/66498\/#Energy_Hormuz_Deadlock_Keeps_Supply_Risks_Elevated\" >Energy: Hormuz Deadlock Keeps Supply Risks Elevated<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-rally-on-softer-inflation-as-geopolitical-tensions-persist\/66498\/#Technology_DeepSeek_Shifts_Strategy_with_V4_Pro_Launch\" >Technology: DeepSeek Shifts Strategy with V4 Pro Launch<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-rally-on-softer-inflation-as-geopolitical-tensions-persist\/66498\/#Geopolitics_Drone_Strikes_Reported_in_Erbil\" >Geopolitics: Drone Strikes Reported in Erbil<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-rally-on-softer-inflation-as-geopolitical-tensions-persist\/66498\/#China_The_Legacy_of_Zhu_Rongji\" >China: The Legacy of Zhu Rongji<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Wall Street reaches new milestones<\/strong> as the <a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> (<a href=\"\/stock\/SPY\">SPY<\/a>) hits a fresh record high following softer-than-expected <strong>Producer Price Index (PPI)<\/strong> data.<\/li>\n<li><strong>DeepSeek V4 Pro officially launches<\/strong> with a controversial pricing structure, including peak-hour rates that represent an <strong>1,100% increase<\/strong> for certain API services.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">Oil prices<\/a> remain volatile near $81\/bbl<\/strong> as traders balance the risk of continued tanker attacks in the <strong>Strait of Hormuz<\/strong> against hopes for a diplomatic reopening.<\/li>\n<li><strong>Geopolitical risks spike in Northern Iraq<\/strong> following reports of multiple drone attacks and powerful explosions in <strong>Erbil<\/strong>, targeting opposition camps and infrastructure.<\/li>\n<li><strong>China reflects on Zhu Rongji&#39;s legacy<\/strong> as the former Premier passes away at 97, sparking renewed debate over the long-term impact of his &quot;painful&quot; 1990s economic reforms.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Equities_Tech_Strength_Drives_Global_Gains\"><\/span>Equities: Tech Strength Drives Global Gains<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Asia-Pacific markets traded mostly higher on Friday, following a bullish lead from Wall Street where the S&amp;P 500 (<a href=\"\/stock\/SPY\">SPY<\/a>) notched a new record. The tech-heavy Nasdaq Composite (<a href=\"\/stock\/QQQ\">QQQ<\/a>) outperformed its peers, gaining <strong>0.8%<\/strong> as investors reacted to <strong>July PPI data<\/strong> which remained unchanged month-on-month. This cooling inflation signal has led traders to scale back bets on a September interest rate hike by the <strong>Federal Reserve<\/strong>, providing a tailwind for growth-sensitive sectors.<\/p>\n<p>In regional trade, South Korea\u2019s KOSPI (<a href=\"\/stock\/KOSPI\">KOSPI<\/a>) surged <strong>2.7%<\/strong>, while Japan\u2019s Nikkei 225 (<a href=\"\/stock\/NKY\">NKY<\/a>) climbed <strong>1.5%<\/strong>. Conversely, Australia\u2019s ASX 200 (<a href=\"\/stock\/XJO\">XJO<\/a>) bucked the trend, sliding <strong>0.7%<\/strong> as domestic factors weighed on sentiment. <em>Market analysts suggest that the &quot;absence of an upside surprise&quot; in inflation data has allowed for a relief rally, though durable gains will depend on upcoming retail sales figures.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Energy_Hormuz_Deadlock_Keeps_Supply_Risks_Elevated\"><\/span>Energy: Hormuz Deadlock Keeps Supply Risks Elevated<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>WTI Crude<\/strong> (<a href=\"\/stock\/CL=F\">CL=F<\/a>) traded near <strong>$81 a barrel<\/strong> while <strong>Brent<\/strong> (<a href=\"\/stock\/BZ=F\">BZ=F<\/a>) settled around <strong>$87<\/strong>, as the energy market remains gripped by uncertainty in the Middle East. Despite a <strong>2.4% drop<\/strong> in the previous session driven by a large U.S. inventory build, prices are supported by the ongoing closure of the <strong>Strait of Hormuz<\/strong>. Iran has reportedly presented six conditions for reopening the waterway, including the withdrawal of U.S. forces and compensation for damages, which Washington has yet to meet.<\/p>\n<p>Supply risks were further highlighted by continued attacks on energy infrastructure, including a drone strike on Saudi Arabia&#39;s <strong>Jazan refinery<\/strong> claimed by Houthi militants. <em>Traders are currently maintaining a significant risk premium as the &quot;on-again, off-again&quot; nature of diplomatic negotiations fails to provide a clear timeline for the restoration of commercial shipping.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Technology_DeepSeek_Shifts_Strategy_with_V4_Pro_Launch\"><\/span>Technology: DeepSeek Shifts Strategy with V4 Pro Launch<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Chinese AI startup <strong>DeepSeek<\/strong> officially released its <strong>V4 Pro<\/strong> model, signaling a pivot from aggressive price-cutting to a more sustainable business model. The company introduced a new tiered pricing system where &quot;peak&quot; rates for 1 million output tokens will jump to <strong>$3.96<\/strong>, up from the previous <strong>$0.87<\/strong>. This represents a staggering <strong>1,100% increase<\/strong> for some API users, though the company noted that off-peak rates remain 50% lower to encourage balanced server loads.<\/p>\n<p>The V4 Pro model reportedly features significant upgrades in <strong>agentic capabilities<\/strong> and production-grade workflows. Despite the sharp price hike, DeepSeek\u2019s rates remain competitive relative to Western rivals like Anthropic and OpenAI. <em>Industry observers view this move as a necessary step for the startup to fund its massive expansion in computing capacity and talent acquisition.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Geopolitics_Drone_Strikes_Reported_in_Erbil\"><\/span>Geopolitics: Drone Strikes Reported in Erbil<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Security concerns intensified in Northern Iraq as <strong>Iraqi media<\/strong> reported five to seven powerful explosions in <strong>Erbil<\/strong>. Local security sources confirmed that air defense systems intercepted at least <strong>six drones<\/strong> targeting various locations, including areas near the <strong>U.S. Consulate<\/strong>. While no immediate casualties were reported, the strikes targeted camps belonging to Iranian Kurdish opposition groups, further complicating the regional security landscape.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"China_The_Legacy_of_Zhu_Rongji\"><\/span>China: The Legacy of Zhu Rongji<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The death of former Chinese Premier <strong>Zhu Rongji<\/strong> at age 97 has reignited a national conversation regarding his transformative economic policies. Known as &quot;Boss Zhu,&quot; he is credited with steering China into the <strong>WTO<\/strong> in 2001 and dismantling inefficient state-owned enterprises (SOEs). However, the &quot;unbalanced&quot; nature of these reforms\u2014which led to an estimated <strong>40 million layoffs<\/strong>\u2014continues to haunt the current administration as it grapples with modern social safety net challenges.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Wall Street reaches new milestones as the S&amp;P 500 (SPY) hits a fresh record high following softer-than-expected Producer [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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