Home » Yingwei Financial Market Express: The U.S. PPI is more than expected and inflation is difficult to fall, but the Fed is already afraid of raising interest rates? Provider Investing.com

Yingwei Financial Market Express: The U.S. PPI is more than expected and inflation is difficult to fall, but the Fed is already afraid of raising interest rates? Provider Investing.com

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Yingwei Financial Market Express: The U.S. PPI is more than expected and inflation is difficult to fall, but the Fed is already afraid of raising interest rates? Provider Investing.com
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Yingwei Financial Investing.com – Wednesday’s higher-than-expected PPI data raised concerns that the Federal Reserve will continue to aggressively raise interest rates in an effort to further suppress inflation. Therefore, the announcement on Thursday will make the market wait and see. The current market expectation is that the CPI is expected to be 8.1, the previous value is 8.3, and the core CPI is expected to be 6.5, the previous value is 6.3.

In addition, last week’s data will be released on Thursday, and payrolls also need to be focused for now.

European and American stock markets

The U.S. producer price index (PPI) for September, released earlier, rose more than expected. The market speculates that the Fed will keep the pace of aggressive interest rate hikes unchanged.

The specific data showed that the monthly increase was 0.4%, the market expected an increase of 0.2%, and a decrease of 0.1% in August; the year-on-year increase was 8.5%, and the market expected an increase of 8.4%. During the period, the PPI of final demand excluding food and energy rose by 0.3% month-on-month, in line with expectations, and rose by 0.4% in August; it rose by 7.2% year-on-year, and the market expected a rise of 7.3%. The PPI for final demand excluding food, energy and trade rose 0.4% month-on-month and 5.6% year-on-year.

However, the Federal Reserve released on Wednesday that officials supported raising interest rates to a more restrictive level, but later adjusted the increase to avoid serious economic impact, which the market took as a more dovish signal than expected.

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In terms of U.S. stocks, it retreated 28 points or 0.1% to 29,210 points; it fell 0.33% to 3,577 points, the sixth consecutive day of losses, and hit a new 52-week low; it fell 0.09% to 10,417 points.

In terms of individual stocks, global beverage giant PepsiCo (NASDAQ: ) announced on Wednesday that its profit for the third quarter ended September 3 rose 21.6% year-on-year to 2.7 billion (USD ‧ the same below); adjusted earnings per share were 1.97 yuan, Better than market expectations of 1.84 yuan; revenue rose 8.8% to 21.97 billion yuan, better than market expectations of 20.84 billion yuan. The Group revised its annual self-operated income growth forecast upward from 10% to 12%; assuming constant exchange rates, the core EPS growth forecast has been raised from 8% to 10%. After the news came to light, PepsiCo’s shares rose more than 4 percent on Wednesday. And Pepsi’s main competitor, Coca-Cola (NYSE: ), will report quarterly results on October 25.

Separately, Microsoft Corp’s (NASDAQ: ) cloud services chief Scott Guthrie said Wednesday that corporate customers have no intention of reducing their spending on cloud services despite an uncertain economic outlook and growing recession fears. Guthrie also said that he has not heard of companies reducing spending on cloud services because of the European energy crisis. Shares of the company closed up 0.15% at $225.75.

In terms of European stocks, they closed down 0.53% at 385 points, after falling as much as 1% during the session; to close at 12,172 points, down 0.39% or 47 points; to close at 5,818 points, down 0.25% or 14 points; to close at 6,826 points, down 0.86% or 59 points.

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Asian stock markets

A shares: closed at 3,025 points, up 45 points or 1.53%, with a turnover of 306.871 billion yuan; closed at a high of 10,838 points throughout the day, up 260 points or 2.46%, with a turnover of 403.346 billion yuan; at 2,343 points, up 81 points or 3.6%.

Hong Kong stocks: closed down 131 points or 0.78% at 16,701 points; down 37 points or 0.65% at 5,692 points; closed down only 0.3% at 3,269 points. The market turnover was 112.8 billion yuan, the highest since September 16.

commodity market

In terms of crude oil, it closed down US$1.84 or 1.95% to US$92.45 per barrel, and fell more than 6% in the past 3 days; it closed down US$2.08 or 2.33% to US$87.27 per barrel, and fell by nearly 7 in 3 trading days this week. %.

On Wednesday, both OPEC and the U.S. Department of Energy lowered their forecasts for oil demand this year. Moreover, the latest U.S. PPI data was higher than expected. , National oil prices fell for 3 consecutive days.

In the gold market, it closed down 0.5% at $1,677.5 an ounce. The focus of the current market is on the CPI data to be released on Thursday. The market is waiting for this data to be a guide for the pace of interest rate hikes by the Federal Reserve.

Foreign exchange market

In currency markets, it closed down 0.01% at 113.27. The FOMC meeting minutes released by the Federal Reserve on Thursday showed a dovish tone, causing the dollar to fluctuate at a high level. Analysts believe that Fed officials may have begun to weigh the risk of raising interest rates too fast and too aggressively. However, the number one concern for the market right now remains inflation.

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The yen was under pressure, hitting another 24-year high, surpassing levels last month when the Bank of Japan intervened in currency markets. It closed up 0.72% at 146.90, after rising to 146.97 during the session, the highest since August 1998.

Traders waited to see the next step of the Bank of England’s rescue operation, which rebounded from the previous sharp decline and closed up 1.25% at 1.1099. However, due to policy uncertainty, the UK 30-year bond yield once again exceeded 5%, and the 10-year bond yield rose by 19 basis points to 4.64%, a new high since 2008.

Still under pressure, it closed down 0.03% at 0.9702 on Wednesday.

[This article is from Yingwei Caiqing Investing.com, to read more, please log on to cn.Investing.com or download Yingwei Caiqing App]

(Editor: Li Shanwen)

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