Global markets sprung into action last night after the long-awaited US inflation data came in lower than expected. All three CPI data prints came in lower than expected and markets with the annual figure the lowest in a year. Tech stocks took a beating on Wall Street with the Nasdaq down nearly 2% as yields and the dollar were smashed.
Currencies exploded as the dollar was hit with UsdJpy off recent highs by nearly 2% and the Euro back close to 1.0900. Gold also saw another big step up, jumping 2% on the day to close out around the $2,422 level.
Traders are expecting to see further corrections in the market today as the rest of the world reacts to the key US number and there is little on the event calendar to arrest the momentum until the US PPI data, due out early in the New York session.
| Market | Change | Close |
| Dow | +0.08% | 39,753 |
| S&P | -0.88% | 5,584 |
| Nasdaq | -1.95% | 18,283 |
| USD | -0.58% | 104.36 |
| US Treasury – 2 Year | -12.6 bps | 4.506% |
| US Treasury – 10 Year | -7.6 bps | 4.204% |
| Oil – Brent | +0.4% | $85.40 |
| Oil – WTI | +0.6% | $82.66 |
| Gold | +1.8% | $2,422 |
Today’s Events:
US Session
- 10.30 pm – US – PPI Data
- 12.00 am – US – Preliminary University of Michigan Consumer Sentiment
- 12.00 am – US – Preliminary University of Michigan Inflation Expectations
