PARIS (Reuters) – The New York Stock Exchange advances at the opening, the latest inflation figures confirming the slowdown in price dynamics, which should give the Federal Reserve room to maneuver to support activity.
In early trading, the Dow Jones index gained 140.61 points, or 0.33% to 42,315.72 points and the broader Standard & Poor’s 500 rose 0.19% to 5,756.14 points. The Nasdaq Composite takes 0.13% or 24.09 points, to 18,214.378. Year-on-year PCE inflation, the indicator of price dynamics used by the Fed to gauge whether its price stability objective is being achieved, was less slightly lower than expected year-on-year in August.
This reading confirms the positioning taken by the central bank, which announced during its September meeting that it had relaxed its monetary policy to support employment, on which risks are accumulating.
“Pushed downward by favorable ‘energy’ base effects, PCE inflation returns to its lowest level in 3 and a half years. This validates the Fed’s choice to have lowered these rates by 50 bps in September” , summarizes Bastien Drut, head of strategy and economic studies at CPR AM.
The final Michigan Sentiment Indicator for September is due at 2:00 p.m. GMT, and could provide further insight into the dynamics of the US industrial sector.
In terms of values, Costco lost 2% after publishing lower consensus results, the drop in consumer spending having weighed on its figures.
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(Written by Corentin Chappron, edited by Blandine Hénault)
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