Market Overview - Page 106

US producer prices fell by 0.5% in July, the first decline after 26 months of growth. The year-over-year PPI rate returned to the single-digit territory at 9.8% against a peak of 11.7% in March and 11.3% a month ago. Producer.

The US inflation data published on Wednesday triggered a strong and unequivocal reaction from financial markets, allowing more certainty about starting a new market cycle. Yesterday’s report showed close to zero price growth for July, while annual CPI growth slowed.

US consumer inflation slowed to 8.5% in July from 9.1% a month earlier. As we had pointed out, the fact was noticeably lower than the forecasted 8.7%, and this caused an immediate market reaction. FedWatch Tool showed the market’s estimate.

It is definitely inflation day today. China, Germany, and Italy have released their consumer inflation data, while the US will release theirs before the New York session begins. Historically, inflation data has rarely deviated from expectations without triggering a market.

Australia’s Westpac Consumer Confidence Index lost 3% in August, developing a nine-month slump that took off 22.9%. The index was near current levels twice in 2020 during the worst periods of lockdowns and uncertainty and even earlier in 2008 during.

The precious metals are recapturing critical levels one after another, claiming a reversal to the upside after a two-year bearish trend. Silver made quite a move up on Monday, gaining over 4%. Palladium closed the day up 5.3%, and at.

Today is a quiet day regarding data from Europe and the USA, allowing a look at data from Asia. Statistics from Japan indicate that the worst for the Rising Sun country may be over, and the weakness in the yen.

Markets were confused by Friday’s US labour market data, not knowing how to react to solid job growth. This is a negative for equities, as it makes us expect a third consecutive 75-point Fed rate hike at the next meeting.

The US economy created 528K new jobs in July, doubling expectations and exceeding the peak employment level set before the pandemic. Notably, construction and manufacturing recovered, probably due to falling commodity prices in these sectors. The hourly earning rate has.

The S&P500 is at 4150, having returned to the rebound highs of late May. The direction of the breakout outside the 4100-4200 range will determine its future for the next days or weeks. In mid-June, the S&P500 halted its correction.

The Bank of England unanimously raised the rate by 50 points to 1.75%, which was widely expected by markets. In addition, the BoE announced that it would start quantitative tightening after the September meeting by selling assets off the balance.

Wednesday proved to be a busy day for oil traders, but the bears emerged as winners at the end of the day. Following WTI, which surrendered a tactically important position, Brent is showing more and more signs of a bear.