The US consumer price index (CPI) report for August released yesterday scared the market, but the annual growth rate of the August producer price index (PPI) released Wednesday (14th) fell for two consecutive months, allowing inflationary pressure to breathe, US equities opened today higher, but the core PPI is still higher than expected.
Before the deadline,Industrial average of the Dow Jonesincreased by more than 80 points, or nearly 0.3%,Nasdaq Composite Indexincreased by 0.3%,S&P 500 Indexincreased by almost 0.4%,Semiconductor of PhiladelphiaThe index rose by more than 0.3 percent.
The US PPI in August reported 8.7%, slightly below market expectations of 8.8%, down sharply from the previous 9.8% value, and declined for the second consecutive month, the lowest growth rate since August 2021, while the monthly PPI rate growth in August Returned to -0.1%, in line with market expectations, the previous value was revised upwards from -0.5% to – 0.4%.
However, core PPI growth in August was still higher than expected. On a monthly basis, the core PPI in August was up 7.3% yoy, higher than market expectations of 7.1%, and the previous value was revised up from 7.6% to 7.7% ; core PPI in August rose 0.4% on a monthly basis, higher than the market expectation of 0.3%, the previous value was revised to 0.3% from 0.2%.
Yesterday’s August Consumer Price Index (CPI) scared investors and bleeding US equities, but the VIX, the fear index, did not skyrocket, suggesting the sell-off was a recalibration of those expectations rather than a panic sale. At the same time, the market has also determined that the Federal Reserve (Fed) will raise interest rates by 3 yards (75 basis points) next week, and the previous hope that the Fed’s political path would be “dovish” due to the drop in inflation was completely disillusioned.
It is worth noting that the market has also emerged that the Fed could raise interest rates by 4 yards (100 basis points) next week Nomura Securities estimated that the Fed could raise interest rates by 4 yards after the report. CPI was released yesterday. At the time of writing, according to the CME Group (Fed) FedWatch tool, the possibility of a rate hike 3 was 68%, while the possibility of a rate hike 4 has risen to 32%.
In Europe, European Commission President Ursula von der Leyen delivered the annual State of the EU address this year, announcing specific plans for Europe to cope with rising energy prices. Von der Leyen called on EU member states to reduce their electricity consumption at peak times and impose a “windfall tax” on energy companies, but she did not mention a price cap for natural gas.
Forex market, withJPYDropping to a nearly 24-year low against the dollar, the Bank of Japan today conducted an “exchange rate survey” of the currency markets, a move seen as a step towards intervention. Japanese finances Shunichi Suzuki also said the intervention will be a deterrent to devaluation.JPYone of the options.
Starting at 9:00 pm on Wednesday (14) Taipei time:
Featured titles:
Starbucks (SBUX-USA) rose 4.31% to $ 91.63 per share at the start of the trade
Global coffee chain giant Starbucks has revised its sales and profit outlook upwards for the next three years as a rapid expansion strategy and an expected recovery in mainland China will boost results.
The company expects earnings per share, excluding certain items, to grow 15% -20% annually over the next three fiscal years, and same-store sales, a key indicator of the restaurant industry, can grow by 7%. 9%, both significantly better than previous predictions. The company also plans to return $ 20 billion to shareholders over the next three years.
Palo Alto Networks (PANW-USA) fell 1.94% to $ 179.41 per share at the start of the trade
Network security firm Palo Alto Networks recently rolled out a 3-for-1 stock plan. Additionally, company CEO Nikesh Arora said in an interview that the company’s business was not affected by the global macroeconomic slowdown such as other colleagues.
SoFi technologies (SOFI-US) rose 1.97% to $ 5.96 per share at the start of trading
Tech finance firm SoFi Technologies was favored by the Wall Street investment bank Bank of America, which upgraded its stock to “Buy” from “Neutral”. Bank of America said that with the end of the deferred payment of SoFi’s beneficiary student loan and its high-profile NFL-related marketing investments driving user growth and engagement rates, it could have a catalytic effect in upcoming operations. .
The main economic data today:
- The US PPI annual growth rate in August was 8.7%, expected to be 8.8% and the previous value was 9.8%
- US August PPI monthly growth rate reported -0.1%, expected -0.1%, previously -0.4%
- The US core PPI annual growth rate in August was 7.3%, forecast at 7.1% and the previous value of 7.7%
- The monthly core PPI growth rate in the US in August was 0.4%, expected to be 0.3% and the previous value was 0.3%
- The change in US EIA crude oil inventories last week (as of 9/9) reported 2.442 million barrels, expected 833,000 barrels and previous value of 8.844 million barrels
- Last week in the United States (as of 9/9) changes in EIA gasoline inventories reported -1.767 million barrels, expected -858.000 barrels, the previous value of 333.000 barrels
Wall Street Analysis:
Seema Shah, chief strategist at Principal Global Investors, said the Fed has a long way to go and that the market is now pricing in a maximum rate of over 4%. Although earlier there was a sense that inflation was slowing, the data showed that inflation was stubbornly stubborn, prompting the Fed to step up its efforts.
Mathieu Racheter, head of equity strategy at Julius Baer, said easing inflationary pressures by the end of the year would allow the Fed to expand its focus again to combat a slowdown in the economy, but it’s not there yet. . He also said that corporate earnings expectations are likely to continue to adjust on the downside, while higher real interest rates will reduce valuations, so he recommends staying defensive.
Mark Cabana, global head of US rate strategy at Bank of America, said the Fed may raise rates too much to cool inflation and may not stop until the US economy slides into recession.
A stronger dollar weighs on Asian currencies,wonIt is one of the currencies that has fallen the most. Chi Lo, senior market strategist for Asia Pacific at BNP Paribas Asset Management, said many emerging markets are suffering from a strong dollar and only China can resist rising global interest rates by maintaining an accommodative policy.
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