While Fed Chair Jay Powell has stuck to his hawkish “inflation will be crushed” talking points of late, financial markets seem curiously optimistic ahead of the cash open of the New York exchanges.
France’s CAC 40 added 0.7% in early trading to 6,168.33, while Germany’s DAX gained 0.9% to 13,014.33. Britain’s FTSE 100 rose nearly 1.1% to 7,338.96. U.S. shares were set to move higher with Dow futures up 0.4% at 31,902.00. S&P 500 futures rose 0.5% to 4,025.50. Oil prices rose.
At the same time, the dollar dropped against the yuan, the euro, and the pound sterling, although recoveries do appear to be on the way.
With the BLS due to release August’s inflation numbers early next week, are the markets pricing in an expectation of a significant drop in consumer price inflation?
The market optimism derives from it agreeing with your other post. Namely that Powell et al are lost in the weeds. That means a "pivot" is coming soon.
The market optimism derives from it agreeing with your other post. Namely that Powell et al are lost in the weeds. That means a "pivot" is coming soon.