Overnight Market Review (2022.8.11) The much-anticipated U.S. inflation data was finally released, and the data was better than market expectations. U.S. stocks rose, the dollar weakened, and dollar-denominated commodities such as gold and crude oil also gained as expectations for an aggressive rate hike by the Federal Reserve plummeted.
The U.S. Department of Labor announced that the year-on-year increase in the consumer price index (CPI) in July slowed to 8.5% from a 40-year high of 9.1% in June, which was lower than the expected increase of 8.7%, and remained unchanged on a monthly basis, less than expected. During the period, the core CPI, excluding food and energy, rose by 5.9% year-on-year, which was lower than the expected increase of 6.1%, and only increased by 0.3% month-on-month, which was also lower than the expected increase of 0.5%.
In the gold market, the better-than-expected inflation performance lowered expectations for the Fed to raise interest rates, and also weakened the dollar, which helped gold prices rebound for the third day in a row and hit a new 5-week high. Gold futures settled up $1.4, or 0.1%, at $1,813.7 an ounce.
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