Predictions and speculations around the inflations have affected the green streak at the US futures markets. S&P 500 futures were down 0.13% after slipping 0.25% yesterday. NASDAQ 100 and Dow Jones Futures too witnessed a slowdown of 0.07% and 0.12% respectively.
This comes to light as investors were looking forward to Key Consumer Inflation Data that would impact policymaking at the Federal level, and influence possible interest rates to be revised.
This trend was observed globally in other markets, and especially Asia where the inflation faced in China has reached its peak in 26 years and jeopardized their assets. This has worst affected the manufacturers, who fight tooth and nail to drive down production costs. While the CSI 300 slipped 0.53%, Tokyo’s well as Europe saw a fall in Nikkei 225 and Stoxx6 600 respectively of nearly half a percent.
“In terms of today’s price action, traders and investors are going to be laser-focused on one thing and one thing only, and that is the US CPI data,” said Avatrade’s Chief Market Analyst, Naeem Aslam.
“If we do get to see a reading which confirms that inflation is only a one-way trade, we could see traders becoming more nervous and that can trigger an intense sell-off for the tech stocks – a trend which we have seen repeatedly this year.”
The month-on-month inflation has also risen from 0.4% in September to 0.6% in October as per the US Producer’s Price Index Inflation. These are new highs made since 2010. Ahead of the inflation data, bonds that were otherwise shown less interest by investors again started craving attention.