The positive tone, which prevailed yesterday in the markets after softer-than-expected US inflation data, which encouraged bets on less aggressive interest rate increases by the Federal Reserve, continues today in the European stock markets. The Ibex 35 advanced 0.66%, allowing it to break the barrier of 8,400 points and continue with an excellent streak. Within the Spanish index, the greatest advances are registered by the shares of Solaria, Repsol and Cellnex, while among the falls, the worst part is for Amadeus, which yields 1.3%. The US CPI was unchanged in July compared to June, when it rose 1.3% month on month. July’s result fell short of expectations due to a sharp drop in gasoline prices, prompting markets to reposition themselves on the hope that inflation is peaking. Overnight on Wall Street, the S&P 500 rose more than 2% after the inflation report, while the Nasdaq Composite added 2.9%. The Nasdaq has now gained more than 20% since its June. The slowdown in US inflation may have opened the door for the Federal Reserve to moderate the size of upcoming rate hikes. “The positive analysis shows us a beginning of price inflation moderation, something that we believe the market did not expect, and that could mean that it would have peaked in June, which would be good news for companies, for consumers, and a relief for the Governments”, they explain from Link Securities. During Wednesday’s session, Chicago Fed President Charles Evans said that inflation remained “unacceptably” high and that the Fed would have to keep raising rates. For his part, Federal Reserve Bank of Minneapolis President Neel Kashkari said that while the inflation reading was “welcome,” the Fed was “a long, long way from declaring victory” and needed to raise rates. much more. San Francisco Fed President Mary Daly, in an interview with the Financial Times, also warned that it is too early for the US central bank to declare victory in its fight against inflation and that a rate hike half a percentage point in September was his benchmark. US Treasuries, which had retreated from an earlier drop in yields as traders reassessed the path of the Federal Reserve rate, Asia on Thursday due to a holiday in Japan. Oil prices are falling today as traders turn their attention back to more crude supply entering the market coupled with weaker demand. Brent crude futures fell 0.4% to $97.02 a barrel, while West Texas Intermediate crude futures fell a similar amount to $91.52.
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