US Inflation hits 5.4% YoY

 

AMERICAN MARKETS MID DAY

Inflation is the data that investors were waiting for. The Bureau of Labor Statistics announced a 5.4% increase in the US CPI (YoY) for July. CPI increase remains unchanged compared to previous month. The figure matches analysts’ forecast (5.3% YoY). Energy remains the main element that raise prices. The category surges by 23.8% over the year. Meanwhile, food prices increased by 3.4% over the last 12 months while the “all items less food and energy” category increased by 4.3%. US 10Y yield remains unchanged at Mid-Day. The yield stands at 1.35%, after reaching 1.17% on August 3rd. Dow Jones climbs by 0.55% while S&P 500 ticks 0.14% higher. NASDAQ 100 is down by 0.28%. The Senates passed $3.5T budged proposed by Democrats. The Senate also passed the $1T bipartisan infrastructure bill, which now goes to the House of Representatives.

AMERICAN MARKETS
NASDAQ 10015 282.46-0.23%
DOW JONES34 767.790.01%
S&P 5004 451.500.03%
RUSSELL 20002 258.41-0.03%
S&P/TSX20 399.68-0.30%
S&P MERVAL74 250.33-0.66%
IBRX BRAZIL48 276.47-0.86%
IPC MEXICO51 337.90-0.25%

 

EUROPEAN MARKETS CLOSING

Europe finishes higher after US inflation data. All major indexes close in the green today. In Europe, Italian and German CPI respectively increase by 0.5% and 0.9% in July (MoM). FTSE MIB gains 0.98% and beats fellow indexes, lifted by Banco Bpm. Bank stocks push the index higher. Thyssenkrupp lies at the bottom of MDAX, after lower cash flow forecast. The share plunges by 5.43%. E.ON sales surged by 8% in H1, to €33 billion. CAC 40 advances with a 0.55% growth, topped by Carrefour (+2.48%). Schneider and Vivendi follow. Euro Stoxx 50 and Stoxx Europe 600 gain 0.44% and 0.42%. EUR strengthens against USD in late afternoon.

EUROPEAN MARKETS
CAC 406 638.46-0.95%
FTSE 1007 051.48-0.38%
DAX15 531.75-0.72%
SMI11 817.20-1.02%
AEX791.45-1.14%
IBEX 358 973.10-0.04%
FTSE MIB25 968.84-0.43%
EURO STOXX 504 158.51-0.87%
OMX NORDIC 402 358.27-1.28%

 

ASIAN PACIFIC MARKETS CLOSING

Asian markets mostly closed mixed today and especially in China. On one hand, SSE Composite ticked 0.08% higher. On the other hand, blue-chip CSI 300 dropped by 0.55% on Wednesday. Real estate and bank stock soared but consumer staples and healthcare shares retreated. Some markets participants expect the Ministry of National Resources to cap land price premium at 15%. In Hong Kong, Hang Seng climbed by 0.20%. The pandemic lifts Q1 revenue of Lenovo (+7.51%) by 27%, to $16.9 billion. KOSPI slid by 0.70% as South Korea sees strong increase in covid-19 cases. Nifty 50 closed flat, helped by metal stocks. Nikkei 225 gains for the 4th time in a row.

ASIAN PACIFIC MARKETS
NIKKEI 22530 248.812.06%
KOSPI3 125.24-0.07%
HANG SENG24 192.16-1.30%
CSI 3004 849.43-0.08%
SSE COMPOSITE INDEX3 613.07-0.80%
NIFTY 5017 853.200.17%
S&P/ASX 2007 319.5-0.86%
FTSE STRAITS TIMES INDEX3 061.35-0.49%
VN INDEX1 351.17-0.12%

 

COMMODITIES & FOREX MARKETS

  • EIA says crude oil inventories in the US are down by 0.4 million barrels
  • According to CNBC, the US urged OPEC+ to increase oil production. This move could lower crude oil prices and decrease inflation. The US later released an official statement regarding this topic
  • Gold futures surge after inflation data in the US
  • Cryptocurrencies rally. BTC climbs back to $46K

 

COMMODITIES
OIL BRENT77.970.93%
OIL WTI73.950.89%
NATURAL GAS5.122.90%
GOLD1 753.050.19%
PALLADIUM1 948.50-1.18%
SILVER22.448-1.03%
WHEAT722.600.78%
COTTON95.703.50%
COCOA2 593.50-0.71%

 

CHANGES & CRYPTOS
EUR/CAD1.4834-0.12%
EUR/USD1.1723-0.12%
EUR/GBP0.85650.12%
EUR/RUB85.255-0.30%
EUR/CHF1.0836-0.07%
BTC/USD42 180.45-3.66%
ETH/USD3 892.69-6.71%

 

Housing prices see a sharp increase

Housing price is also seeing an increase. In the OECD, the pandemic doesn’t prevent housing prices from experiencing sharp increases in OECD.

Line chart of Average annual % change (nominal prices) showing House prices are rising sharply across the OECD

 

 

CAC 40PERFORMANCES
WORST PERFORMANCESTOP PERFORMANCES
L'Oreal-2.30%Renault2.37%
Legrand-2.32%Carrefour1.14%
Eurofins Scientific-2.36%Societe Generale1.11%
EssilorLuxottica-2.45%BNP Paribas0.81%
Kering-2.98%Vivendi0.78%

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