Wall Street is up, but bets are mounting on the Fed’s next rate rise. Avio soars in Milan
US inflation rose by 3.4 per cent, in line with forecasts, but the ‘core’ figure came in higher than expected. Oil prices are falling, but Brent crude remains above $100 a barrel
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Usa: inflazione Cpi +0,4% ad agosto, +3,4% annuale, come stime
***Aeroporti: Save avanti su Catania-Comiso, per F2i rebus Palermo
Germania: Meloni, Afd? Rispettare democrazia, no paragoni con Italia
(Il Sole 24 Ore Radiocor) - The European stock markets extended their gains in the final session of the week, with US inflation figures rising to 3.4 per cent, in line with estimates. It now remains to be seen what the Fed will do regarding monetary policy. Whilst the ECB decided yesterday to raise interest rates by 25 basis points, next week it will be the turn of the US central bank, with market participants increasing their bets on a quarter-percentage-point rise in the benchmark interest rate by the Federal Open Market Committee (FOMC). According to the CME Group’s FedWatch tracker, which monitors the prices of Federal Reserve interest rate futures, the probability of a rate rise has risen from 70 per cent to 90 per cent.
Meanwhile, attention remains focused on commodities and, in particular, on oil, which, despite falling, remains at high levels. After all, tensions in the Middle East persist and, on the eve of the announcement, it emerged that senior US officials had discussed with President Donald Trump the possibility that the war could drag on until the end of his term of office. There are also concerns about sales on the bond market, which have pushed interest rates on numerous government bonds to their highest levels in years: the ten-year German Bund is yielding over 3.5 per cent, whilst the ten-year Treasury is yielding over 4.9 per cent.
Thus, the FTSE MIB in Milan is making good progress, with a similar trend for the CAC 40 in Paris, the DAX 40 in Frankfurt and the other European stock markets.
Wall Street up following inflation figures; rate rise looms closer. Oracle soars
Wall Street is trading higher following the latest inflation figures, which traders believe will prompt the Fed to raise interest rates by 25 basis points next week. According to the CME Group’s FedWatch tracker, the probability of a rate rise has risen from 70 per cent to 90 per cent. Turning to the figures, consumer prices in the United States have kept pace, in line with estimates. The Consumer Price Index (CPI) rose by 3.4 per cent year-on-year, the same as in July and as predicted by experts. On a month-on-month basis, there was a rise of 0.4%, again in line with expectations. ‘Core’ figures – excluding energy and food – rose by 0.3 per cent (compared with an expected 0.2 per cent) and by 2.4 per cent year-on-year (as per the consensus), following 2.5 per cent the previous month. The energy price index rose by 2.1 per cent, representing an annual increase of 16.3 per cent. The food price index rose by 0.1 per cent over the month and by 2.7 per cent over the year.
On the stock market , Oracle after the company announced a 30 per cent rise in revenue in the first fiscal quarter, driven by strong demand for cloud services and the rapid expansion of data centres.
