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Markets on alert: investors react to inflation data in the US and the dollar falls while waiting for the Fed

Markets on alert: investors react to inflation data in the US and the dollar falls while waiting for the Fed
Markets on alert: investors react to inflation data in the US and the dollar falls while waiting for the Fed

In Europe, markets advance, recovering part of the losses accumulated this week due to political uncertainty in France. President Emmanuel Macron He called early elections after his defeat by the extreme right in the European elections.

On Tuesday, Apple soared 7% on Wall Street, hitting an all-time high after introducing new artificial intelligence features to revitalize demand for iPhones. This propelled the Nasdaq Composite up 0.9% and the S&P 500 up 0.3%, both hitting record highs at the close.

Inflation slowed more than expected in May in the United States, which could give Federal Reserve officials some confidence that it is still on track for its 2% target. The consumer price index (CPI) rose 3.3% year-over-year in May, according to data released by the Bureau of Labor Statistics on Wednesday. Economists surveyed by FactSet expected prices to rise 3.4% last month, compared with the 3.4% pace set in April.

The market reaction to the inflation data

Thus, the MSCI world equity index advanced 0.1% and the pan-European STOXX 600 rose 0.5%, registering its first increase in four days. US stock futures rose 0.2%, indicating a positive opening on Wall Street.

In Asia, Chinese stocks ended the day mostly stable, as still weak price data failed to significantly improve market sentiment. In the currency market, the dollar index falls to 105.10 units. The euro rose 0.2% to $1.0762, although it had been down for three days due to concerns over the elections in France.

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The euro is near its lowest level in almost two years against the pound. The British currency appreciated 0.2% to $1.2764, ignoring data showing the UK economy failed to grow in April after a strong start to 2024.

As Ámbito anticipated, the Fed is not expected to modify rates at its meeting. Instead, attention will focus on whether he sticks to his forecast for three rate cuts this year. US Treasury bonds, which had improved thanks to the good results of the 10-year debt auction, stabilized. The yield of the benchmark notes fell 1 basis point, to 4.396%, after losing 7 basis points in the previous session.

Source: Ambito

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