Stock markets rose on Tuesday after investors ignored the US inflation report, which did not change expectations about interest rate cuts.
The Labor Department said the annual rise in the consumer price index reached 3.2 percent last month, while core inflation, which excludes volatile food and energy prices, rose 3.8 percent.
Agence France-Presse quoted Joe Mazzola, an analyst at Charles Schwab, as saying, “Although the report did not show significant progress on the price front, the market’s initial muted reaction may indicate that investors welcome any progress, no matter how slight.”
“The progress here is the slight decrease in the annual base rate,” he added.
Chris Beauchamp, an analyst at the trading platform (IG), told Agence France-Presse that the beginning of the year often witnesses a slight decline in inflation, adding that last year began with a rise in inflation and then witnessed a decline, and if 2024 follows a similar pattern, interest rates may be reduced. Next June.
The US Federal Reserve had expected to cut interest rates this year, but first it must see the inflation rate slow convincingly towards its 2 percent target.
The major US stock indices fell at times in volatile morning trading. But by midday in New York they were significantly higher, on track for a record close.
For its part, European stocks opened higher and maintained their gains throughout the day, with the main indices closing up about one percent.
Wall Street continued its recent rally after a similarly disappointing CPI report a month ago, Kathleen Brooks, an analyst at XTP.com, noted to Agence France-Presse.
“We don’t think the February number will impact stocks’ rise in the short term,” she said, as the recent stock market rally was driven by strong corporate results such as interest rate expectations.
She added, “In general, we expect financial markets to trade in a cautious tone in the coming days ahead of the Federal Reserve meeting next week.”
The Federal Reserve is expected to meet on March 19-20 to discuss interest rate policy.
As for London, it received support from official British unemployment and wages data, which raised hopes for a reduction in interest rates in the United Kingdom in the coming months.
Hong Kong stocks continued their recent advance, rising more than three percent, supported by new purchases of technology companies.
Shares of electronics giant Xiaomi rose more than 10 percent after it said it would begin deliveries of its first electric car by the end of this month.
However, Tokyo fell again amid speculation that the Bank of Japan will shift away from its ultra-loose monetary policy next week.
2024-03-12 19:15:10
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