- The S& P 500 futures were flat This morning, with the stability of global markets in or near its highest levels ever. Investors are optimistic that the US Federal Reserve will reduce prices in September, despite high inflation, in part due to President Trump’s appointment to Stephen Miran to the Federal Reserve. If inflation is 0.3 % or less, it is expected to reduce the rate; High reading can hinder these hopes and cause market disturbances.
The S& P 500 apartments were this morning after the index closed by 0.78 % on Friday, which is the highest new level ever. Japanese Nikkei 225 has also reached a standard peak, an increase of 1.85 % today. The stocks in Europe have widely gained their gains in early trading.
Why all optimism?
Since investors believe that the US Federal Reserve will definitely reduce interest rates in September, and they hope that the consumer price inflation report – tomorrow – a significant increase in inflation.
According to JPMorgan, the “Federal Reserve” is a full effect: “We expect a moderate weakness in the total data, but enough to stimulate the Fed Federal Reserve’s response” in September, according to Fabio Bassi and his colleagues.
The consensus of the analysts is that inflation will increase 0.3 % to 3 %, according to ing, there is a small increase in enough to the Federal Reserve to ignore it in favor of cutting rates. The weak job report on August 1 was so surprising that the central bank is now expected to ignore a small amount of inflation in favor of supporting the economy with a new dose of cheaper money.
“The CPI report in the United States can be tomorrow … one of the largest summer events for the markets,” Jim Reed and his team in German bank Tell customers this morning.
If the consumer price index increases by 0.3 % or less, “this is likely to be considered acceptable for the federal reserve to move forward in September (90 %), given the background of the weakest job market significantly.”
Another reason that investors trust will be reduced next month: President Trump Stephen Miran added as a temporary ruler in the Federal Reserve. They consider him to have one task, to persuade the Federal Open Markets Committee to reduce prices and weaken the dollar.
“Stephen Miran sent news headlines earlier this year for his suggestion” Mar Lajo Agreement “to weaken the dollar and increase US exports. While the administration has not officially invented the idea, his appointment indicates a clear discomfort from the strength of the dollar.” “Miran’s position is firmly corresponding to the Dofish camp.”
Of course, the opposite is also true. If this inflation report is higher than tomorrow, then the probability of September reduction may disappear, which will likely lead to some drama and sale tomorrow morning.
Here is a snapshot of the procedure before the opening bell in New York:
- S & P 500 futures contracts It was flat this morning, premarkket, after closing the index by 0.78 % on Friday.
- Stoxx Europe 600 It was flat in early trading.
- FTSE 100 in the United Kingdom 0.25 % increased in early trading.
- Japan Nikki 225 It was up to 1.85 %, reached the highest new level ever.
- China CSI 300 It was 0.43 %.
- South Korea Cuban 0.1 % decreased.
- Elegant India 50 It was 0.69 %.
- Bitcoin It rose to 121.6 thousand dollars.
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