(News Bulletin 247) – US equity markets are expected to rise again on Wednesday morning after the release of weaker-than-expected inflation figures, which appease the scenario of excessive monetary tightening by the Reserve federal.
A little more than half an hour before the opening, the ‘future’ contract on the Dow Jones advances by 1.3%, while that on the Nasdaq climbs by 2.3%, announcing a start to the session in territory positive.
Investors learned with relief this morning that consumer price inflation in the United States had eased in July, mainly due to a contraction in gasoline and gas prices.
The consumer price index measured by the Department of Labor thus posted an increase of 8.5% over one year last month, where economists anticipated an increase of 8.7%.
These figures allay for a time the nightmare of investors, namely a further worsening of inflation which could have led the Federal Reserve to accelerate on the path of monetary tightening.
The probability of a rate hike of 75 basis points in September, which was estimated by traders at 69.5% before the publication of the statistics, is now down to 62.5%, according to the FedWatch barometer of the CME Group.
These figures, which show that inflation is coming back a little under control, which could allow the Fed to be more patient, were greeted by a decline in bond yields and the dollar.
On the rates market, the yield on ten-year Treasuries fell more than ten basis points, to almost 2.69%, following the publication of these figures.
The greenback is also suffering from the moderation of inflation, which removes the prospect of sharp increases in rates in the United States, trading around 1.0330 against the euro.
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