Closing Report 11.08.2021

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.

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.

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.

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

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.