October 6, 2022

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Inflation in the US was 8.5%, lower than expected. Wall Street is working, EU exchanges are active

(Il Sole 24 Ore Radiocor) – The European stock exchanges They extend their stride with euro After the release of US inflation data in July: the consumer price index grew 8.5% annually, unchanged compared to June, less than expected by analysts. Treasuries are also rising, with a parallel fall in yields, and in the same way government bonds on the Old Continent are moving so much that the 10-year BTp has fallen below 3% yield.

So investors are hoping that the climax of the extravagant life is now behind us and that the Fed can slow monetary tightening. “It is no exaggeration to say that the inflation numbers could set the tone for the markets for the rest of the month – the US comment was previously by Oanda’s Craig Erlam – the lower than expected number could be a significant contributor to the markets.” “This was a huge improvement over the June data, and if repeated in August, it could reduce pressure on the September FOMC meeting,” said Michael Metcalfe, head of macro strategy at State Street Global Markets.

Wall Street of momentum, European listings go on

Significantly higher opening a Wall StreetAnd the Thanks to slowing inflation in the US. All major indicators rose by more than 1 percentage point (S & P500And the Nasdaq CorporationAnd the Dow Jones). In Piazza Avari FTSE MIB Thus it acquires land and is among the most vital with DAX 40 in Frankfurt and inAEX Amsterdam. Among the major companies in Milan, industrial stocks such as IVECO Groupand Interpump, StMicroelectronics, and Pirelli. rise again PepperThis confirms the positive trend after the publication of the semi-annual report. At the European level technology recovery with the rise of retailers and travel.

USA, inflation surprises on the positive side

In July, as mentioned, US consumer prices remained unchanged from the previous month, against expectations of +0.2%, after +1.1% in June. This was announced by the Ministry of Labor. The “core” figure, that is, without a component of food and energy prices, rose 0.3%, after +0.7% in June, versus expectations of +0.5%. On an annualized basis, the overall figure came in at +8.5%, below 8.7% of expectations, after +9.1% in the previous month, which was the highest number since November 1981. The “core” figure grew by 5.9%, the same as the previous month, with expectations being + 6.1%. Over the past month, energy prices fell 4.6%, while food prices rose 1.1%, with annual increases of 32.9% and 10.9%, respectively, the last number being the highest since May 1979.

Meanwhile, consumer prices rose to a two-year high in China, while in Germany they rose 0.9% in July from June and 7.5% year on year, slowing from 7.6% in June and 7.9% in May. According to data from Destatis, estimates are confirmed.