Wall Street comforted by the publication of the US consumer price index in August: the figure, particularly monitored as a thermometer of inflation, at a time when it is feared that the Fed’s tapering will end up being premature, rose in August as expected, with the core component less advanced than forecasts.
The general index rose by 5.3%, as expected, and slightly slower than the previous + 5.4%. On a monthly basis, the figure grew by 0.3%, less than the + 0.4% estimated and slowing compared to + 0.5% in July.
However, real wages rose 0.3% on a weekly basis, more than the expected 0.1% decline.
Excluding the more volatile components represented by the prices of energy and food goods, the core consumer price index advanced by 4% on an annual basis, less than the + 4.2% expected and also less than the + 4.3% in July .
On a monthly level, the core figure rose by 0.1%, less than the + 0.3% estimated, after the + 0.3% in July and at its lowest since last February.
The Dow Jones and the S&P thus rose for the second consecutive session, albeit with weak gains, between 0.20% and just over 0.30%. The Nasdaq advanced by about 0.40%, after closing in the red on the eve of the session.
Oil prices still on the rise, following the publication of the monthly OPEC report, released yesterday, which revised upwards the outlook on oil demand in 2022. Prices also rise in the wake of fears about US supply, rekindled with the announcement of the US National Hurricane Center that tropical storm Nicholas, which is heading for Houston, Texas, has turned into a hurricane. WTI crude oil rises above $ 70, while Brent crude moves above the $ 74 mark.
Regarding the outlook of Wall Street and global equities in general, a Deutsche Bank survey revealed that a possible flare-up of inflation in the world is the second biggest fear gripping investors, after the Covid-19 pandemic.
Most investors expect equity markets to correct between 5% and 10% before the end of the year. In its monthly survey, conducted at the beginning of September, Deutsche Bank surveyed more than 550 market professionals from around the world: 58% of respondents said they expected a market correction, while one in 10 analysts estimates a correction greater than 10%. Only 31% believe there will be no correction.
The S&P 500 has risen by about 18% since the beginning of the year, the Nasdaq by 19%, the European Stoxx 600 by 17%.
Among the titles, attention to Apple waiting for the Apple Event, with which the Cupertino giant will unveil the new models of iPhones, AirPods and Apple Watch.
The protagonist of the session is also Amazon. The online retail giant has announced that it is trying to fill 125,000 open positions in the US, offering an average salary of $ 18 an hour.
Amazon’s hourly base wage usually starts at $ 15.
Meanwhile, the meeting of the FOMC, the Fed’s monetary policy arm, which will begin on 21 September, is approaching.
In light of the inflation data just released, Art Hogan, chief market strategist at National Securities, said he believes Jerome Powell’s Fed “will talk about tapering in the September meeting, without announcing it until the November meeting, and then launch it. before the end of the year”.