Previous Trading Days Events 15.05.2024

Yesterdays U.S. CPI inflation figures release shook the markets. U.S. consumer prices increased less than expected in April, suggesting that inflation resumed its downward trend giving a boost to financial market expectations for a September interest rate cut.

Retail sales were unexpectedly flat last month. The reports suggested that domestic demand was cooling which is favourable data for the Fed.

The economic data are picture perfect in favour of interest rate cuts, said Christopher Rupkey, chief economist at FWDBONDS. The country is not out of the woods from the threat of inflation, but we can start to see the end of the forest.

The CPI rose 0.3 last month after advancing 0.4 in March and February.

President Joe Biden said prices were still too high. Donald Trumps campaign blamed inflation on the Biden administrations policies and touted the former presidents America First agenda of low taxes, lower prices and higher wages.

Annual inflation In the 12 months through April, the CPI increased 3.4 after climbing 3.5 in March. The annual increase in consumer prices has slowed from a peak of 9.1 in June 2022. Inflation accelerated in the first quarter amid strong domestic demand after moderating for much of last year. Last months slowdown was a relief after data on Tuesday showed a jump in producer prices in April.

Source httpswww.reuters.commarketsususconsumerpricesriselessthanexpectedaprilcorecpislows20240515

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