Inflation data Financial News

The financial markets shifted into risk-on mode following inflation data Friday that capped a week of good news for the markets and the economy.

(Reuters) — Wall Street's main indexes opened higher on Friday after data showing easing inflation pressures added to hopes that the Federal Reserve's policy tightening was ending, while chip stocks surged as Intel (NASDAQ:INTC) posted a surprise quarterly profit.

The Dow Jones Industrial Average rose 160.77 points, or 0.46%, at the open to 35,443.49.

dollar held just above an over one-year low on Wednesday as traders assessed the U.S. rate outlook, while the New Zealand dollar spiked briefly after a higher-than-expected inflation reading pushed back prospects of policy easing further out. The U.S.

The rise in consumer prices cooled to 2.8 per cent in June, Statistics Canada reported on July 18, slightly below consensus expectations and the slowest pace since March 2021. While within the Bank of Canada’s target range, some costs are still putting a strain on Canadians’ wallets. Here are five things in the inflation data that you should know about:

Federal Reserve Bank of Chicago President Austan Goolsbee said recent consumer-price data showing inflation easing was «promising,» though inflation is still higher than policymakers' 2% goal. «It's at least promising that this week we got inflation numbers that show inflation is coming down at a pretty rapid clip,» Goolsbee said Friday in an interview with Fox News.

jobless benefits dropped 12,000 to a seasonally adjusted 237,000 for the week ended July 8, but overall the labor market remains tight. The 10-year treasury yield fell to 3.76% from 3.86% late Wednesday. The 2-year treasury yield fell to 4.63% from 4.75%.

cryptocurrency markets were majorly trading higher on Wednesday ahead of the key US inflation data, due later in the day. Bitcoin (BTC) rose 0.70% to $30,667, whereas Ethereum (ETH) was above the 1,850 level. BTC volume stood at approximately $11.75 billion, falling 20% in the last 24 hours. «Bitcoin rose above $31,000, underpinned by a bullish forecast from U.K. bank Standard Chartered predicting that bitcoin will reach $50,000 by the end of 2023 and $120,000 by the end of 2024. However, it retraced back to $30,350 as the US June Consumer Price Index (CPI) and the Producer Price Index (PPI) will be released this week, bringing inflation data back into the spotlight,» said CoinDCX Research Team. Shubham Hudda, Senior Manager at CoinSwitch Markets Desk, said, «The CPI (YoY) consensus forecast this time is 3.1% — down from the previous reading of 4%. A lower-than-expected reading can give the entire market an upward push, however, it seems like the market may not be as concerned in case the reading comes out to be more than 3.1%.»

By Natalie Grover

BSE Sensex rose to a fresh record high of 66,052. The Nifty 50 index also hit a new all-time high of 19,532.25. The moderation in US inflation eased concerns around the surge in domestic retail inflation in June, as well as the signals of demand softness issued by leading IT companies Tata Consultancy Services and HCL Tech.

India’s consumer price index (CPI) inflation rose for the first time in five months to 4.81% in June 2023, which was higher than the street's expectations of 4.58%. The inflation came in at 4.81% versus 4.31% in May 2023 and 7.01% in June last year. Market will also take cues from the corporate earnings for the quarter ended June 2023 with IT major Wipro to announce its results later today.  Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — 13th July Japan’s Nikkei 225 rose 0.36%, while the Topix gained marginally.

The price of Bitcoin is steady at around $30,600, reflecting a nearly 0.50% increase on Wednesday. 

Financial advisors, characteristically not known for making rash decisions or succumbing to knee-jerk reactions, are soaking up the latest inflation data and generally acknowledging some shifting economic tides in the works.

Wall Street is inching higher ahead of an update on U.S. inflation that could play into the Federal Reserve’s next interest rate decision later this month

Investing.com — U.S. stock futures rose slightly Wednesday, adding to the previous session’s gains ahead of the release of key inflation data, which could convince the Federal Reserve to shortly end its cycle of interest rate hikes.

Under the prevailing caution ahead of key corporate earnings, the 30-share BSE benchmark Sensex declined 224 points or 0.34% to settle at 65,393. The NSE Nifty dropped 55 points or 0.28% to end at 19,384.

The price of Bitcoin is currently trading at $30,628, reflecting a nearly 0.50% increase on Wednesday. 

Asian shares nudged higher and the dollar was at a two-month low on Wednesday ahead of crucial U.S. inflation data that will help gauge whether the Federal Reserve is at the end of its aggressive rate hike policy. The Japanese yen strengthened against most major currencies and last fetched 139.43 against the dollar, its highest in a month.

dollar sank to a two-month low against its major peers on Wednesday in the lead-up to a key U.S. inflation reading, while sterling scaled a 15-month top on expectations the Bank of England (BoE) has further to go in raising rates. U.S.

Gold prices edged higher on Wednesday after the greenback and bond yields retreated as investors cautiously awaited U.S. inflation data that could offer more cues on the Federal Reserve's rate-hike policy path. * Spot gold rose 0.2% to $1,935.39 per ounce by 0053 GMT.

By Johann M Cherian and Bansari Mayur Kamdar