(CercleFinance.com) – The New York Stock Exchange should still show a certain heaviness on Friday following the publication of new inflation figures which showed an acceleration in prices in August.
Half an hour before the open, futures on the main New York indices fell nearly 0.1%, signaling a start to the session on a note of weakness.
Investors were particularly on the lookout this morning for statistics relating to consumption, especially since the latest inflation figures were surprisingly strong.
The PCE index, excluding food and energy prices (known as ‘core’), rose 0.6% in August after remaining unchanged in July, where analysts expected it to rise by 0.4% .
In annual variation, the ‘core’ PCE index – closely followed by the Federal Reserve – posted an increase of 4.9% against +4.7% in July.
The latest relative data certainly took the markets by surprise since they now place the probability of a rate hike of 75 basis points on November 2 at 57%, against 53% yesterday.
The theme of inflation remains very important because its evolution will determine the rate of tightening of the Fed’s monetary policy and therefore the extent of the slowdown in economic activity.
The statistic pushed up the dollar, which is back around 0.9750 against the euro, but not Treasury yields, since the 10-year Treasuries rate is currently falling towards 3.71%.
The barrel of American light crude fell 1% to 80.4 dollars, insensitive to the threat that Storm Ian posed to the country’s energy infrastructure, even if oil prices are on track to post gains on the whole of the week.
As for values, Nike should open lower and weigh on the Dow Jones the day after the publication of its quarterly results, having disappointed investors.
The sporting goods maker said its margins narrowed in the past quarter due to logistics costs, the strong dollar and promotional operations aimed at reducing inventory.
The action of the American group, down 42% this year, should stumble 13% at the opening.
Copyright (c) 2022 CercleFinance.com. All rights reserved.