13, September 2017

Inflation data reduces the chances of rate hike this year

American markets opened the day in the red after a two-day rally. Falling Apple stock put pressure on the entire US equity market. Apple's shares fell by almost a percentage before the start of trading after the expected new model of Apple's phone aroused fear of investors that it will not be in demand in the market. Nevertheless, the general market sentiment remains positive.

Official US data showed that producer inflation in August rose, but was below analysts' expectations. The PPI index increased by 2.4% with July + 1.9% and the forecast + 2.5%.

The oil market will analyze the data on inventories. It is expected that oil reserves in the US rose during the second consecutive week. Analysts predict that crude oil inventories for the week ending Sept. 8 rose by about 3.2 million barrels.

Crude oil prices reacted positively to the data of the OPEC report, which showed that oil output fell in August and predicts higher demand in 2018, which will raise investors' expectations regarding a shortage of demand and supply for oil.

Despite the negative dynamics of today's trading, the global market sentiment remains positive. The growth of prices in commodity markets supports the energy sectors and emerging markets. Negative expectations of the hurricane season on the US economy were leveled, and geopolitical risks decreased. Against this backdrop, US stock indexes are trading near historical highs, supporting demand for the US dollar.