Wall Street mixed ahead of key CPI data
Macro Scenes:
Wall Street had a relatively muted session following Moody’s downgrade of the US credit rating, and the tech rally took a breather ahead of the US October inflation data. Consensus calls for a sharp decline to 3.3% year-on-year from 3.7% in September for the headline CPI. But the core CPI may stay elevated, which could keep the Fed on its hawkish tone on the interest rate. The US dollar was slightly lower against most of the other major G-10 currencies due to a retreat in the US bond yields. The US faces a deadline for the debt ceiling negotiation, which risks a government shutdown at the end of the week. Crude oil extended gains for the second straight trading day, but both Brent and WTI futures were below key resistance of the 50-day moving average. The Japanese Yen spiked against the USD on bets for the BOJ’s intervention on the exchange rate. This caused a brief plunge of USD/JPY to 151.20 before bouncing back to about 151.70. Chinese stock markets rebounded amid APEC summit optimism. Asian stock markets are set to open higher. ASX 200 futures were up 0.99%, and Hang Seng Index futures rose 0.72%.Chart of the Day:
Tesla, daily
Source: CMC Markets as of 14 November 2023