S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
- The US Dollar consolidates gains within a narrow range around 99.00.
- Investors await the release of the US CPI, due later today, to make investment decisions.
- Later on, preliminary US PMI data is expected to show healthy business activity.
The US Dollar is consolidating previous gains on Friday, trading within a 40-pip range, both sides of the 99.00 line, with investors looking from the sidelines ahead of the release of September’s US Consumer Prices Index report, due later on the day.
The US Bureau of Labour will make an exception and release September’s inflation figures, despite the ongoing US government shutdown, to provide the Social Security Administration with the necessary data to calculate the annual cost-of-living adjustment in order to manage benefits and subsidies.
US CPI is expected to show higher price pressures
The market consensus anticipates a further acceleration of price pressures, with the yearly CPI rising to 3.1% from 2.8% in August. However, the core CPI, more relevant for the Federal Reserve’s rate-setting purposes, is expected to have continued growing at a 3.1% yearly rate, unchanged from the previous month.
The primary focus remains on next week’s Fed meeting, which is widely expected to conclude with a 25-basis-point rate cut, no matter the outcome of today’s CPI release. An upside surprise in inflation, however, might revive fears of tariffs-induced inflation risks, cast doubt on a December rate cut, and provide an additional impulse to the US Dollar.
Apart from that, investors will also be attentive to the preliminary US S&P Global Purchasing Managers’ Index (PMI) data for further clues about the strength of the US economy. The market consensus points to a steady growth in the manufacturing sector and a moderate slowdown in services, all in all, reflecting a healthy business activity.
