Good morning, today is Friday, October 13th, and the second week of October is coming to an end. Yesterday, the American markets closed in the red, with the Nasdaq losing 0.40%, the Dow Jones 0.51%, and the S&P 0.62%. This decline was caused by the CPI data, which came in slightly worse than expected. The Consumer Price Index rose by 0.4% on a monthly basis and 3.7% on an annual basis. However, the most significant indicator is the core CPI, which excludes the energy and food sectors and is closely monitored by the Federal Reserve for monetary policy decisions. This indicator fell slightly below expectations.
The price of oil remained stable, with a 0.1% increase on a monthly basis and a 4.1% increase on an annual basis, in line with predictions. However, the increase in prices in the energy and food sectors was slightly higher than expected, with a 0.1% increase on a monthly basis and a 3.6% increase on an annual basis. This led to limited sales in the markets, resulting in a loss of about half a percentage point in the major indices.
Today, the markets are in slightly positive territory, without major fluctuations. The Dollar has strengthened against the Euro, dropping from 1.620 to 1.530, although it is showing a slight recovery this morning. The bond market reacted to the inflation data, with the yield on the ten-year Treasury rising above 4.70% yesterday and now retracing to 4.65%. The two-year Treasury yield also rose above the 5% psychological threshold.
Overall, Asian markets had a challenging night due to data on Chinese exports, imports, and inflation, highlighting the fragility of the Chinese economy. Chinese exports fell by 6.2% on an annual basis, and imports declined by 6%. These figures reflect a growing fragility in the global economy.
The CPI remained unchanged, and the Consumer Price Index even dropped to 2.4% on an annual basis. Asian stock markets are all in the red, with Shanghai down by 0.64% and the Korean index down by 0.95%. European stock markets are in slightly positive territory, but without significant movements.
Today, there are no particularly significant economic data expected, but it marks the start of the quarterly earnings season, with JP Morgan, Blackrock, and Wells Fargo among the major American banks set to release their results. It is expected that these banks will report losses related to the decrease in the value of assets due to declining yields. Additionally, United Group, one of the top capitalized companies in the United States, will publish its results. We will closely follow these developments and provide further updates on Monday. Thank you for your attention.
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