– The highest inflation prints since 1990 have sparked the biggest decrease of US stocks in a month. Nasdaq decreased by 1.66%, S&P500 fell by 0.82% and DJIA was down 0.66%.
– The greenback is the highest in 52 weeks, EURUSD fell below 1.1500, and gold prices maintained levels of 1850 USD per ounce
– Janet Yellen still beliefs that high inflation in the US is transitory and will drop next year. On the other hand, she said that Fed will not accept price increases like those seen in the 1970s.
– Market participants are concerned that price data will force the Fed to hike as soon as June next year
– Employment in Australia decreased in October by 46.3k which was a huge disappointment in comparison to expectations of 50k increase (previously: -138k). The unemployment rate increased to 5.2% (exp.: 4,8%; prev.: 4,6%). After the release, the Aussie took a big hit. AUDUSD tested 0.7300 during the Asian session.
– Asian markets were rather calm after the sell-off on Wall Street and the high US inflation print. Chinese and Japanese stocks increased, while markets in Australia, New Zealand and Korea were under selling pressure.
– European futures point to a mixed start of the trading.
– We have the US holiday today – Veterans Day. The US stock markets will be open, as well as futures markets. Bond trading is closed and banks have holidays, so there will be no economic releases from the US today.
Traders are concerned by the highest inflation in the US since 1990. It may mean that rates will go up much earlier than expected. US100 decreased the most in a month.
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