EconomyLens.com
No Result
View All Result
Friday, June 27, 2025
  • Home
  • Economy
  • Business
  • Markets
  • Tech
  • Editorials
EconomyLens.com
  • Home
  • Economy
  • Business
  • Markets
  • Tech
  • Editorials
No Result
View All Result
EconomyLens.com
No Result
View All Result
Home Markets

Global stocks drop on sticky US inflation

David Peterson by David Peterson
February 13, 2024
in Markets
Reading Time: 6 mins read
A A
9
19
SHARES
235
VIEWS
Share on FacebookShare on Twitter

New York (AFP) – Stocks in the United States and Europe slumped on Tuesday while the dollar climbed as data showed that US inflation slowed less than expected in January, diminishing chances of an early interest rate cut.

The closely watched Consumer Price Index (CPI) rose 3.1 percent from a year ago in January, down from 3.4 percent in December, the Labor Department said– but analysts had predicted that the rate could fall below 3.0 percent.

Meanwhile, the core CPI reading that excludes volatile food and energy prices — and which is more important to policymakers — was steady at a 3.9 percent annual increase.

Related

Stocks mixed with eyes on Mideast, dollar hit by Trump Fed comment

Stocks rally as Iran-Israel ceasefire holds, oil claws back some losses

Tesla sales skid in Europe in May despite EV rebound

Virgin Australia surges in market comeback

Asian stocks up as Trump announces Iran-Israel ceasefire

The US Federal Reserve has indicated it will likely begin to cut interest rates later this year, but Fed officials have continued to fixate on the central bank’s two percent inflation target.

US Treasury bond yields jumped as futures markets shifted bets against central bank rate cuts in March and May.

“The January inflation report came in hot across the board and that has the potential to spook investors after a big rally over the last few months,” said eToro analyst Bret Kenwell.

Stocks have been propelled to new heights in recent months as investors anticipate a drop in interest rates.

But Wall Street indices spent the entire day in the red, with investors seemingly using the inflation data as an opportunity to take profits.

All three major indices dropped more than one percent.

The inflation report “just stretches out the whole process,” said Maris Ogg of Tower Bridge Advisors, who described the CPI reading as a “blip.”

“I don’t see any reason why the economy wouldn’t continue to do reasonably well,” Ogg said.

Europe stocks closed down almost one percent.

In Asia, most of the region returned to work after a long weekend.

Tokyo led advances thanks to a surge in shares of Japanese investment group SoftBank, which was boosted by another blockbuster day for its US-listed chip designer Arm.

Arm has almost doubled in value in the past week — and tripled since its September listing — owing to healthy demand for semiconductors fueled by an expected boom in artificial intelligence.

The dollar also pushed higher against the euro and other currencies following the CPI data.

“For a Fed that’s been telling markets that rate cuts are on the way, even during the hiking cycle, this complicates matters as core inflation remains far away from the Fed’s two percent target,” said a note from James Stanley of Forex.com.

– Key figures around 2130 GMT –

New York – Dow: DOWN 1.4 percent at 38,272.75 (close)

New York – S&P 500: DOWN 1.4 percent at 4,953.17 (close)

New York – Nasdaq Composite: DOWN 1.8 percent at 15,655.60 (close)

London – FTSE 100: DOWN 0.8 percent at 7,512.28 (close)

Paris – CAC 40: DOWN 0.8 percent at 7,625.31 (close)

Frankfurt – DAX: DOWN 0.9 percent at 16,880.83 (close)

EURO STOXX 50: DOWN 1.2 percent at 4,689.28 (close)

Tokyo – Nikkei 225: UP 2.9 percent at 37,963.97 (close)

Hong Kong – Hang Seng Index: Closed for holiday

Shanghai – Composite: Closed for holiday

Euro/dollar: DOWN at $1.0712 from $1.0772 on Monday

Dollar/yen: UP at 150.80 yen from 149.35 yen

Pound/dollar: DOWN at $1.2590 from $1.2629 

Euro/pound: DOWN at 85.06 pence from 85.29 pence

Brent North Sea Crude: UP 0.9 percent at $82.77 per barrel

West Texas Intermediate: UP 1.2 percent at $77.87 per barrel

burs-jmb/sst

Tags: inflationinterest ratesstocks
Share8Tweet5Share1Pin2Send
Previous Post

Apple’s iMessage, Microsoft’s Bing escape EU rules

Next Post

Valentine’s Day strike misery for UK lovers

David Peterson

David Peterson

Related Posts

Markets

Oil prices tumble as markets shrug off Iranian rebuttal to US

June 24, 2025
Markets

Oil prices spike after US strikes on Iran

June 22, 2025
Markets

Crude sinks as Trump delays decision on Iran strike

June 20, 2025
Markets

How Trumponomics has shaken global markets

June 19, 2025
Markets

US stocks flat as Fed keeps rates steady, oil prices gyrate

June 19, 2025
Markets

Oil prices drop following Trump’s Iran comments, US stocks rise

June 18, 2025
Next Post

Valentine's Day strike misery for UK lovers

From tourism to energy, Senegal economy braces for fallout

Body Shop's UK arm falls into administration: statement

US consumer inflation falls in January, but less than expected

0 0 votes
Article Rating
Subscribe
Notify of
guest
guest
9 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
  • Trending
  • Comments
  • Latest

New York ruling deals Trump business a major blow

September 30, 2024

Elon Musk’s X fights Australian watchdog over church stabbing posts

April 21, 2024

Women journalists bear the brunt of cyberbullying

April 22, 2024

France probes TotalEnergies over 2021 Mozambique attack

May 6, 2024

Ghanaian finance ministry warns against fallout from anti-LGBTQ law

74

New York ruling deals Trump business a major blow

72

Shady bleaching jabs fuel health fears, scams in W. Africa

71

Stock markets waver, oil prices edge up

65

Stocks climb, dollar holds on trade hopes and rate bets

June 26, 2025

US Treasury signals G7 deal excluding US firms from some taxes

June 26, 2025

Nike profits sink but company says it is turning a corner

June 26, 2025

Facing EU deadline, Apple announces App Store changes

June 26, 2025
EconomyLens Logo

We bring the world economy to you. Get the latest news and insights on the global economy, from trade and finance to technology and innovation.

Pages

  • Home
  • About Us
  • Privacy Policy
  • Contact Us

Categories

  • Business
  • Economy
  • Markets
  • Tech
  • Editorials

Network

  • Coolinarco.com
  • CasualSelf.com
  • Fit.CasualSelf.com
  • Sport.CasualSelf.com
  • SportBeep.com
  • MachinaSphere.com
  • MagnifyPost.com
  • TodayAiNews.com
  • VideosArena.com
© 2025 EconomyLens.com - Top economic news from around the world.
No Result
View All Result
  • Home
  • Economy
  • Business
  • Markets
  • Tech
  • Editorials

© 2024 EconomyLens.com - Top economic news from around the world.