Friday October 14, 2022: $138.38 -($4.61) -(3.22%)
Oct 14, 2022 1:46:11 GMT -8
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Post by Dave on Oct 14, 2022 1:46:11 GMT -8
Good morning. Another Friday, another red pre-market at -0.56% at this moment. Last Fridays close was $140.09, will we beat this today?
Asian stocks gain after Wall St rebounds from inflation jolt
Asian stocks gain after Wall St rebounds from inflation jolt
BEIJING -- Asian stock markets surged Friday after Wall Street rebounded from a slump caused by worse-than-forecast inflation numbers.
Japan's market benchmark soared by an unusually wide margin of 3.4%. Hong Kong gained 3.3% and Shanghai also rose. Benchmark U.S. crude oil rose more than $2 per barrel.
Wall Street's benchmark S&P 500 index tumbled Thursday after the headline U.S. consumer price index for September rose 8.2% over a year earlier. But the market benchmark quickly rebounded to end up 2.6% for its biggest daily gain in 2 1/2 years.
The “sticker shock” of inflation was "shrugged off,” possibly because traders already expect another sharp interest rate hike from the Federal Reserve next month to cool surging prices, said Vishnu Varathan of Mizuho Bank in a report.
The Fed and central banks in Europe and Asia have raised rates by unusually wide margins this year to contain inflation that is at multi-decade highs. Traders worry they might tip the global economy into recession.
The U.S. government data showed inflation is spreading more widely across the economy. One component that is closely followed by policy makers and investors accelerated to its hottest level in 40 years.
The CPI was down from August's 8.3% increase but not as much as expected.
Core inflation, which strips out volatile food and energy costs to show the long-term trend, accelerated to 6.6% from August's 6.3%. Prices in September rose 0.6% from the previous month.
That appeared likely to reinforce Fed plans for more big rate hikes. Most traders already expected a rise of up to three-quarters of a percentage point, three times its usual margin, at the U.S. central bank's next meeting in November.
Thursday's data prompted some investors to expect yet another rate hike of the same size in December.
Japan's market benchmark soared by an unusually wide margin of 3.4%. Hong Kong gained 3.3% and Shanghai also rose. Benchmark U.S. crude oil rose more than $2 per barrel.
Wall Street's benchmark S&P 500 index tumbled Thursday after the headline U.S. consumer price index for September rose 8.2% over a year earlier. But the market benchmark quickly rebounded to end up 2.6% for its biggest daily gain in 2 1/2 years.
The “sticker shock” of inflation was "shrugged off,” possibly because traders already expect another sharp interest rate hike from the Federal Reserve next month to cool surging prices, said Vishnu Varathan of Mizuho Bank in a report.
The Fed and central banks in Europe and Asia have raised rates by unusually wide margins this year to contain inflation that is at multi-decade highs. Traders worry they might tip the global economy into recession.
The U.S. government data showed inflation is spreading more widely across the economy. One component that is closely followed by policy makers and investors accelerated to its hottest level in 40 years.
The CPI was down from August's 8.3% increase but not as much as expected.
Core inflation, which strips out volatile food and energy costs to show the long-term trend, accelerated to 6.6% from August's 6.3%. Prices in September rose 0.6% from the previous month.
That appeared likely to reinforce Fed plans for more big rate hikes. Most traders already expected a rise of up to three-quarters of a percentage point, three times its usual margin, at the U.S. central bank's next meeting in November.
Thursday's data prompted some investors to expect yet another rate hike of the same size in December.