Page 63 - Inflation Data News Today

Cooler-than-expected U.S. inflation data on Tuesday and Wednesday reset market expectations for how soon the Federal Reserve will cut rates and weighed on the dollar. The greenback is poised for its biggest weekly drop since July, down 1.6% over the past five days, and second-biggest decline this year.

The October US inflation data is a gamechanger for the stock market. The 3.2 per cent October inflation print is lower than expected. More importantly,

The 10-year Treasury yield dropped more than 19 basis points as major indexes rallied on soft October inflation data.

Just one-tenth of a percentage point was enough to trigger big moves in global markets that were some of the sharpest we've seen this year. The U.S. CPI came in flat for last month, against consensus expectations of a 0.1% rise. Next up is British inflation data, due at 0700 GMT.

Many consumers blame high inflation on greedy companies jacking up prices. But consumers are about to win a round.

U.S. stock index futures extended gains on Tuesday as cooler-than-expected inflation data bolstered expectations that the Federal Reserve is done with its interest rate-hiking campaign. The Labor Department's report showed the consumer price index (CPI) rose 3.2% on an annual basis, compared to expectations of a 3.3% increase, according to economists polled by Reuters. Core CPI, which excludes volatile food and energy costs, grew 4% year-on-year compared with forecasts of a 4.1% increase.

Equity markets edged up Tuesday as investors cautiously await the release of US inflation data, aware that a big miss in either direction could have major implications for the Federal Reserve's interest rate plans over the next few months."While the US economic data is expected to be more or less well-behaved, investors are fully aware that fluctuations in inflation, especially top-side beats, are an ongoing risk to markets," said Stephen Innes at SPI Asset Management.

Chicago Federal Reserve President Austan Goolsbee said the latest inflation data shows "progress" on a key measure watched by the central bank, but "we still have a long way to go."

Outlook for Pound US Dollar Exchange Rate: Analyst Views on Where Next for GBP/USD

Wall Street's main indexes slipped on Monday as investors awaited a crucial inflation reading and other economic data this week that could shape expectations around how long the Federal Reserve will keep interest rates elevated. This week's economic data as well as speeches from Fed officials will provide clues on the trajectory of interest rates amid growing expectations that the Fed is done hiking borrowing costs. "If the year-over-year (number) continues to show a decline, th...