(CercleFinance.com) – The New York Stock Exchange should open lower on Tuesday morning, affected by inflation figures which show a less pronounced decline than expected in consumer prices in the United States.
Half an hour before the opening, futures contracts on the main New York indices fell from 0.9% to 1.7%, suggesting a start to the session in the red.
According to the Department of Labor, the American consumer price index increased by 3.1% in January compared to the same month of 2023, an annual rate down 0.3 points compared to December 2023.
This statistic, however, proves to be higher than the consensus of analysts, who hoped for a return of the indicator below the 3% mark, in line with the 2% objective set by the Fed.
Investors are saying that this less marked slowdown in inflation than expected could confirm the Federal Reserve in its patient and wait-and-see approach, dependent on the evolution of economic data.
“This means the Fed could extend its ‘wait and see’ approach before committing to cutting rates soon, an attitude consistent with its most recent comments,” comments Neal Keane, head of trading at ADSS.
‘With inflation decelerating, the Fed is still riding the so-called ‘Goldilocks’ scenario, even if the theory of a ‘soft landing’ of growth is today being replaced by that of a ‘no landing at all’, notes the professional.
If the scenario of a rate cut in March now seems 95% ruled out by the markets, that of a monetary easing in May is also doomed and this is the horizon for a first rate cut. rate in June which now prevails among investors.
On the rates market, the yield on ten-year US bonds gained more than ten basis points, to almost 4.28%, the highest in almost three months.
On the exchange rate, the dollar is regaining ground, which is pushing the euro down to around 1.07 against the greenback, again at a low since November.
Market players failed to reassure themselves with the contrasting quarterly results published in the morning by several big names in the stock market.
Among the positive surprises, Coca-Cola reported a profit increase of 10% in the fourth quarter, thanks to organic growth of 12%.
The toy manufacturer Hasbro, on the other hand, revealed results well below expectations for the fourth quarter and was cautious for its 2024 financial year.
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