The CPI has been earmarked on the calendar since the Fed meeting in July when they said they would be data dependent, wanted to see a string of CPI data to confirm inflation is under control, etc. The time is now (or soon). The US CPI is expected at -0.1% and 8.1% YoY(vs 0.0% and 8.5% last month). The Core is expected at 0.3% and 6.1% YoY (vs 0.3% last and 5.9%. The USD is the weakest of the majors ahead of the release, while the EUR is the strongest of the major currencies. Overnight the ZEW numbers for the Eurozone and for Germany came out weaker than expected.
The Fed meets next Wednesday where they are expected to raise rates by 75 basis points.
Stocks are higher. The major indices have closed higher for 4 consecutive days. US yields are lower
IN other markets
- spot gold is up $5.63 or 0.31% at $1730.50
- spot silver is up $0.09 or 0.45% $19.88
- WTI crude oil is up $1.23 or 1.4% at $89.01
- Natural gas is up $0.10 or 1.29% at $8.35
- bitcoin is trading at $22,620
In the premarket for stocks in the US, the major indices are up for the 5th consecutive day:
- Dow industrial average up 235 points after yesterdays 229.63 point rise
- S&P index up 34 points after yesterdays 43.07 point rise
- NASDAQ index up 105 points after yesterdays 154.10 point rise
In the European equity markets, the major indices are also tracking higher. The German DAX is up for the 5th consecutive day
- German DAX +1.0%
- France's CAC up 0.83%
- UK's FTSE 100 +0.44%
- Spain's Ibex +0.3%
- Italy's FTSE MIB +0.8%
In the US debt market, yields are lower:
- 2 year yield is at 3.518%, down -5.8 basis points
- 5 year yield is at 3.394%, down -6.1 basis point
- 10 year yield is at 3.308%, down -5.6 basis points
- 30 year yield is at 3.47%, down -4.7 basis points
The European debt market, yields are little changed to down:
- Germany, 1.310%, unchanged
- France 2.224%, -0.4 basis points
- UK 3.066%, -0.4 basis points
- Spain 2.783%, -5.4 basis points
- Italy 3.87% -5.7 basis points
