The dollar index has risen in three of the last four business days. The stock was up 0.6% at 103.36 at the end of the session.
The February wholesale price index (PPI, final demand goods and services) published by the US Department of Labor on the 14th increased 0.6% from the previous month (seasonally adjusted). Growth accelerated from a 0.3% increase in January and exceeded market expectations compiled by Reuters for a 0.3% rise.
The number of new unemployment insurance claims (seasonally adjusted) for the week ending March 9, published by the US Department of Labor on the 14th, was 209,000, down 1,000 from the previous week. Economists had predicted 218,000.
Eric Breger, Director of Currencies and Precious Metals Risk Management at Silver Gold Bull, said the currency move showed that the market was not expecting the strong US economic data released today. “What I’m thinking right now is whether the Fed could make some dovish statements next week, but it could be more hawkish.”
NY foreign exchange market:
The yield on the 10-year note rose 10.2 basis points (bp) to 4.294% in late trading. This is expected to be the biggest one-day increase since mid-February.
The two-year bond yield rose 6.5 basis points to 4.687%.
The February wholesale price index (PPI, final demand goods and services) published on the same day increased by 0.6% from the previous month (seasonally adjusted). Growth accelerated from a 0.3% increase in January and exceeded market expectations compiled by Reuters for a 0.3% rise. This was an increase of 1.6% compared to the same month last year.
The Consumer Price Index (CPI) for February published on the 12th increased by 0.4% from the previous month and 3.2% from the same month last year. In January, it increased by 0.3% from the previous month and by 3.1% from the same month last year.
Mi Financial Bond Market:
The US Department of Labor announced on the 14th that the PPI for February rose 0.6% from the previous month, accelerating from the 0.3% increase in January. This exceeded market expectations compiled by Reuters (a rise of 0.3%). Prices of goods such as gasoline and food rose.
Among the major sectors the S & P 500 (.SPX), opens a new tab, reductions evident in utilities (.SPLRCU), opens a new tab, which is sensitive to interest rate trends, and real estate (.SPLRCR) , opens a new tab. Real estate fell 1.6% and utilities fell 0.8%.
The Federal Reserve is expected to keep interest rates unchanged at next week’s Federal Open Market Committee (FOMC) meeting. The probability of a rate cut of at least 25 basis points (bp) in June is 62.9%, down from 81.7% a week ago, according to CME FedWatch.
“Inflation indicators have generally been relatively strong over the past two months, but the market has risen nonetheless,” said Tony Welch, chief investment officer of Signature FD.
US stock market:
The US Department of Labor announced on the same day that the wholesale price index (PPI) for February rose 0.6% from the previous month, well above the market estimate (based on Reuters) of an increase of 0.3%. The increase compared to the same month last year was 1.6%, which was higher than expected (an increase of 1.1%), and the core index excluding energy and food increased by 0.3% compared to r the previous month, which was 0.2% higher than expected. surpass Following the release of the February US consumer price index (CPI) on the 12th, which showed continued inflationary pressures, expectations for a US interest rate cut have weakened somewhat, and the yield on the US Treasury note 10 years, an indicator of long-term interest rates, have fallen. As the dollar strengthened against the euro, selling gold, a non-interest-bearing dollar-traded commodity, became dominant.
NY precious metals:
In its monthly report released on the 14th, the International Energy Agency (IEA) revised its global demand forecast for 2024 up from its previous forecast, while lowering its supply forecast for 2024. The day before, The US Energy Information Administration (EIA) announced that weekly crude oil inventories fell by 1.5 million barrels compared to the previous week (market estimates rose by 1.3 million barrels, according to Reuters), and gasoline inventories also fell 5.7 million barrels (down 1.9 million barrels from the previous week). In both cases, the reduction was greater than expected. In response to this, there is a growing expectation that the supply-demand balance will tighten, and prices will be gradually lowered from the start. As the price goes beyond the psychological milestone of $80, some follow-on buying appears to have begun.
In addition, the market continued to be supported by a series of drone attacks by Ukraine targeting Russian oil facilities, raising concerns about Russia’s crude oil supply.
NYMEX Energy:
This is a provisional value based on LSEG data. The comparison from the previous day may not match.
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