Treasury yields falls post inflation data
The Dow and S&P 500 closed at all-time highs, shrugging of inflation report. The Dow closing higher by 0.60%% and the S&P 500 advanced by 0.2%. The Nasdaq composite traded 0.1% lower. CPI rose 5.4% from a year earlier. For the month of July, and 0.5% from previous month. Core inflation however, just rose by 0.3%. Treasury yields dipped after the inflation report, currently standing at 1.34%. The U.S. dollar index was down 0.17% at 92.915 after the inflation data as the data showed CPI eased in July.
Asian markets traded mixed at open today, as a reflection of a wobbly trading day on wall street post CPI data. China’s CSI 300 is down by 0.55%. Japan’s NIKKEI is down by 0.20%. In Hong Kong, the Hang Seng index was down by 0.73% trading at 26466.10. Australia’s ASX is up by 0.05%, currently trading at 7,588.20 on the back of strong earnings results.
Stock indices of Western Europe ended trading on Wednesday with growth thanks to strong corporate reports. Strong company results over the past quarter offset fears of a new wave of COVID-19 worldwide and its potential economic impact. The consolidated index of the largest enterprises in the region Stoxx Europe 600 by the close of trading rose by 0.42% and amounted to 474.32 points. French CAC 40 rose 0.55%. Italy’s FTSE MIB and Spain’s IBEX 35 added 0.98% and 0.86%, respectively. London’s leading index closed the day up at an 18-month high as traders rode the wave of confidence from the US with new figures suggesting talk of spiking inflation may be overplayed. The FTSE 100 index closed up 59.10 points, or 0.8%, at 7,220.14 – the highest level since February 2020. Germany stocks were mixed after the close on Wednesday, as gains in the Financial Services, Insurance and Industrials sectors led shares higher while losses in the Technology, Retail and Software sectors led shares lower. At the close in Frankfurt, the DAX gained 0.35% to hit a new all-time high, while the MDAX index declined 0.25%, and the TecDAX index declined 0.69%. Britain’s economy grew by a faster-than expected 1.0% in June, boosted by the huge services sector as people resumed going to see their doctors following the pandemic and after many hospitality firms were allowed to resume indoor service in mid-May, official data showed on Thursday.
The Russian stock market closed on the rise amid a positive reaction from external stock exchanges to the US inflation statistics for July, which does not give an unambiguous signal of a possible imminent tightening of the Fed’s monetary policy. Sagging oil remained a restraining factor. The Moscow Exchange index increased by 0.39% and amounted to 3877.37 points. The RTS index rose by 0.59% to 1656.20 points.
The Central Bank reported that the annual rate of trending inflation in Russia in July 2021 amounted to 4.88% after 4.91% in June, remaining at an increased level relative to the target.
Crude oil for delivery in September fell 1.03% or 0.70 to hit $67.59 a barrel, while the October Brent oil contract fell 1.03% or 0.73 to trade at $69.90 a barrel. Biden’s administration on Wednesday urged the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, to boost oil output to tackle rising gasoline prices that they see as a threat to the global economic recovery. Gold Futures for December delivery was up 1.03% or 17.85 to $1749.55 a troy ounce.