Optimism about the discounts in the excessive price of inflation

It was a great day for the markets as all the three main American stock indicators closed at record levels on Wednesday.

This is despite the most clear growth expected in one month in consumer prices in the United States in August, according to the Ministry of Labor, indicating that the customs tariff is likely to provoke inflation heat.

While the monthly inflation reading that exceeds the estimates of a download Survey by 0.1 percentage, the annual annual reading came, in addition to the monthly and annual basic data, as expected.

She was given, this is not much comfort. The presence of expectations from an unpleasant scenario confirmed that it does not take away its bite.

However, inflation data accompanied a separate report that showed weekly emotional claims in the United States to its highest levels in nearly four years.

“Consumer price index report today has been dismantled through the report of unemployed claims,” books Sima Shah, chief international strategic expert in the management of the main assets.

This reinforces the narration that the US Federal Reserve will reduce interest rates by at least 25 points during its meeting next week.

But with a lot of riding on the Federal Reserve, it is important to not celebrate a possible reduction next week, but also chewing what President Jerome Powell says about the economy and monetary policy.

Trump’s pressure on Europe to slap the customs tariffs by 100 % on India and China raises the eyebrows

Reports that US President Donald Trump asked the European Union to slap the tariffs of up to 100 % on China and India due to its Russian oil purchases, which sparked eyebrows on both sides of the Atlantic Ocean.

Analysts say the European Union is unlikely to stand out. The bloc will not only be careful not to adopt the controversial Trump strategy and burn its bridges with India and China, the complex commercial relationship of the European Union with Russia makes such a step not very likely.

Holly Eliaat