The November US inflation data appeared promising with lower-than-expected inflation rates, but uncertainties remain due to data collection issues following the government shutdown, leading to skepticism about the report's accuracy. Despite this, markets reacted positively, driven by the CPI figures and strong earnings reports, though the reliability of the data is questionable.
Asian shares rose following US CPI data showing slower inflation, supporting expectations of Federal Reserve rate cuts. Japan’s 10-year bond yields hit multi-decade highs after the BOJ raised rates, while the yen weakened. Commodities like platinum gained, and US Treasury yields increased slightly. The market sentiment remains cautious but optimistic about rate cuts and economic growth.
US inflation eased to 2.7% in November, with price increases slowing for items like hotels, milk, and clothing, potentially supporting further interest rate cuts by the Federal Reserve, despite some uncertainties due to recent data disruptions and mixed signals in housing costs and tariffs.
Wall Street economists warn that November's US inflation report, showing a sharp decline, may be flawed due to missing data caused by the government shutdown, leading to skepticism about the accuracy of the figures and their impact on monetary policy.
World shares showed mixed results following a decline in US markets driven by AI stocks, with traders awaiting US inflation data and Japan's interest rate decision; Asian markets experienced declines and gains, while oil prices rose after geopolitical developments.
A cooler-than-expected US inflation report for September boosted market optimism, leading traders to anticipate rate cuts by the Federal Reserve in October and December. Major US indexes rose, supported by strong earnings reports, though tariffs and ongoing trade negotiations with China and Canada remain concerns. The upcoming week features key earnings reports and a high-stakes meeting between President Trump and Xi Jinping at the APEC Summit, with the trade deal's future hanging in the balance.
Oil prices surged 4% due to new sanctions on Russian crude amid geopolitical tensions, while Tesla's stock fell after missing earnings expectations, amidst broader market concerns over inflation, trade tensions, and global political developments.
Gold prices increased due to ongoing geopolitical tensions involving US sanctions on Russia and potential export controls on China, with investors awaiting US inflation data to gauge future interest rate moves; gold has gained significantly this year amid economic uncertainties.
The article discusses upcoming economic data releases from the US, UK, and China, highlighting delays and expectations for inflation and growth figures, and their potential impact on monetary policy and market outlooks.
The IMF reports that a surge in AI-related investment has helped the US avoid a sharp economic slowdown, boosting growth and wealth, but raises concerns about inflation and market stability, while the global outlook remains cautiously optimistic.
The article discusses the potential significance of US inflation compared to employment figures, highlighting the importance of understanding which factor will have a greater impact on the economy and policy decisions.
Asian stocks rallied and global markets reached new highs after US inflation and jobs data supported expectations of a Federal Reserve interest rate cut next week, with tech and chip stocks leading gains and investors optimistic about easing monetary policy.
Stock markets rose globally as traders anticipate a US interest rate cut following weak jobs data, while political uncertainties in Japan and France influence currency and bond markets. Investors are also eyeing upcoming US inflation data and central bank decisions, with gold reaching new highs and oil prices climbing.
Stocks rose and the dollar wobbled after weak US jobs data increased expectations of a US interest rate cut, while the yen fell amid political uncertainty in Japan following Prime Minister Ishiba's resignation. Investors are also watching European political developments and upcoming US inflation data, with markets pricing in a potential rate cut later this month.
Despite campaign promises to lower costs, Trump's tariffs and policies have led to increased prices for groceries, electricity, and other essentials in the US, disproportionately affecting low- and middle-income families and contradicting his promise to make America affordable again.