Meanwhile, European stock markets are also reacting upwards. The IBEX 35, the Spanish stock market reference, shot up nearly 1%, above 8,100 points, in line with the rest of the European stock markets. The ca 40 French rises 1.6%, the ftse 100 British 1.5% and the Dax German 3%.
Investors are picking up their spirits after a punishing day yesterday, with the Dow Jones down 1.95%, the S&P 500 down 2.5% and the Nasdaq down 2.1%. These sharp falls came amid uncertainty stemming from the US mid-term elections. The market expected the Republicans to take control of the House of Representatives and the Senate on Tuesday, a situation that would create a gridlock in US politics.
Today all eyes were on the October CPIshowing a monthly rise of 0.4%, below the 0.6% that economists had anticipated. The year-on-year rate also seems to give a respite, standing at 7.7% compared to the 7.9% that the market had predicted. Excluding volatile food and energy costs, the so-called core CPI rose 0.3% in the month and 6.3% in annual terms, versus respective estimates of 0.5% and 6.5% .
This is a key report for the Federal Reserve, which will meet again in mid-December to presumably continue its path of interest rate hikes. With this data, the expectations that the men and women of Jerome Powell take their foot off the accelerator a little, with an increase of 50 points, increase.
Source: Ambito
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