Bonds Slump, Stocks Waver After Hot US CPI Print: Markets Wrap

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(Bloomberg) – US government bonds have been sold and shares have been sold after stimulating hot inflation data, the Federal Reserve will not have a lot of space to reduce this year. The oil sank on the news of the US talks, Russia on Ukraine.

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Treasury bonds fell through the curve on Wednesday, as the return was sent for 10 years nine basis points on Wednesday, which is the biggest step for one day since December when the FBI’s references shook the Falcon Trading. Australian bonds and New Zealand echoed the moves early on Thursday.

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The futures index of Japan, Australia and Hong Kong were flexible after the American stocks held on narrow ranges. The S&P 500 closed 0.3 % less, while NASDAQ 100 technology managed to advance 0.1 %. The index of Chinese companies listed in the United States provides 2.7 %.

The dollar power index has not changed slightly, as the continuous American inflation was represented across the currency markets. The yen fell by more than 1 % on Wednesday, while the euro led gains between a group of 10 currencies.

These moves focused mainly on the highest rise in US prices, prompting merchants to control the bets on US price discounts now in the first and only reduction this year to come in December.

The monthly scale of the US consumer price index increased by 0.5 % in January, the most since August 2023. The basic consumer price index – which excludes food and energy costs – increased 0.4 % in January, and also more than expected. The measuring devices also increased on an annual basis for both the main address and the basic inflation.

“Perhaps the first in the range has won a little longer,” said Ellen Zintner at Morgan Stanley Wealth Management. “The Federal Reserve was waiting for clear signs that inflation was going down again, and this morning they got the opposite. Until this changes, the markets will have to remain patient about additional price cuts.”

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Federal Reserve Chairman Jerome Powell said the data shows that although the central bank has made great progress towards inflation, there is still more work that must be done, “so we want to continue politics at the present time.”

“The inflation report today will make a very uncomfortable reading to study the Federal Reserve,” Sima Shah said in the main asset management. “If this continues in the next few months, the risk of inflation may become very likely to the upward trend to allow the Federal Reserve to reduce prices ever this year.”

Gold rose up and oil prices decreased, as President Donald Trump said he agreed with Russian President Vladimir Putin to start talks about ending the war in Ukraine. Raw prices in West Texas and Brint decreased by more than 2 % on Wednesday.

In Asia, the data set for the version on Thursday includes the prices of the two -way producers, which is the interest rate decision in the Philippines, while the money supply data may be issued to China at any time until February 15. Elsewhere, the Prime Minister of India Narendra Modi will meet at the White House later Thursday.

Hot inflation

The market will start seriously, given that the next step by the Federal Reserve – even if it is in late 2025 or early 2026 – will be a picnic and not reduced, according to Chris Zakarili in Northlight Asset Management.

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“The market is likely to have a negative reaction to the knee to the increasing risks of” upper tolerance “or even” higher than “. So there is something that justifies caution.”

The jump in inflation in the United States last month that sudden investors were mostly due to the way the government adapts to increase the usual prices at the beginning of the year, according to Bloomberg’s economic.

While the report disturbed the markets and the possibilities of reducing the interest rate in the Federal Reserve decreased in the first half of the year, the progress was “mostly due to the remaining mobilization-” the impact of January “-which limits the signal of hot printing” Bloomberg Economic Written by Anna Wong and Stewart. pee. Meanwhile, inflation ran cold at the end of 2024.

The S&P 500 decreased after reducing the index, most of the 1.1 % chip after inflation data. Tesla Inc. In Megacaws and Meta Platforms Inc. For the 18th consecutive session. For the first time since November, NASDAQ 100 wiped a 1 % loss inside the day. In late hours, Cisco Systems Inc. jumped. On optimistic sales expectations.

The main events this week:

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• Industrial production in the euro area, Thursday
• Calls for the unemployed for American initial work, PPI, Thursday
• GDP in the euro area, Friday
• American retail sales, industrial production, business inventory lists, Friday
• Lori Logan speaks in Fad

Some of the main moves in the markets:

Shares

• Hang Seng Futures increased from 7:22 am Tokyo time
• The future of S&P/ASX 200 has not changed

Currency

• The Bloomberg index in the dollar has not changed a little bit
• The euro did not change a little at $ 1.0386
• The Japanese yen did not change slightly at 154.35 per dollar
• Yuan did not change the outside a little at 7,3111 per dollar
• The Australian dollar did not change a little at $ 0.6281

Cross currencies

• Bitcoin rose 0.2 % to 97,843.98 dollars
• The ether rose by 2.1 % to 2,738.49 dollars

Bonds

• The 10 -year return in Australia is offered six basis points to 4.52 %

Commodity

• Gold did not change a little spot

This story was produced with the help of Bloomberg’s Option.

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