(As of 7:00 am PST)
US
equities extended their losses from Tuesday after a report on consumer prices
showed inflation picking up in July, causing investors to fret over a possible
September Fed rate hike. The consumer-price index rose 0.1% in July, marking
the sixth consecutive month of increases. Although overall inflation remains
generally muted, the Fed has made it clear that any pickup in inflation towards
the Fed’s long run target of 2% would warrant a rate hike. Investors are
trading today’s CPI cautiously ahead of this afternoon’s release of the FOMC’s
latest policy meeting minutes. Once again, the market will be looking for clues
as to a possible September rate hike. In overseas action, Asian markets
finished on a mostly higher note, with China’s Shanghai index finishing up 1.9%
after a steep decline of 5% in the early morning hours. European markets are
heading toward a negative close, with investors concerned over the volatility
in China. Oil prices are slipping 1% to $42.20/barrel today despite a report
from the American Petroleum Institute that showed crude supplies slipping last
week. Gold prices and other precious metals are higher today.
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