Wall Street is trading with a mixed sign this Wednesday after the strong purchases on Tuesday, led by the Nasdaqand after the production prices offered a encouraging view on inflation development. This Wednesday all eyes have fallen on the July CPI, which has met expectations with a drop of one tenth. The indices have met expectations, and the general rate has recorded a very slight moderation to 2.9% from 3% previously, while the underlying rate has also recorded slight drop to 3.2% from 3.3% in June.
Michael Brownsenior research strategist at Pepperstone, says that This new moderation in prices brings the Fed's September cut even closer«, although he recalls that «after the weaker-than-expected July employment data, it is the labour market, not inflation, that is likely to determine both the magnitude of such a move and the scale and speed of further steps towards policy normalisation.» Similarly, Bret Kenwell, eToro investment analyst, stresses that «in the absence of an unexpected rebound in today's inflation report, It seems that the path for a cut in September is clear«With results mostly in line with estimates, investors should be more confident of a rate cut in September. However, it is no longer a question of whether or when the Fed will cut rates, but whether it will do so by 25 or 50 basis points.. The real estate and utilities sectors have been the best performers so far this month, driven by recent speculation about rate cuts. Today's report increases confidence in rate cuts and could act as a bullish catalyst for these groups, and for equities in general,» he said. The data will be key to the evolution of the monetary policy of the Federal Reserve (Fed)but above all for calm market spirits and to clear up doubts about the health of the US economy. In this regard, the president of the Federal Reserve of Atlanta, Raphael Bostichas assured that the body needs know «some more data» in order to achieve the trust you crave on controlling inflation and being able to begin cutting interest rates. «We want to be absolutely sure. It would be really bad if we started cutting rates and then had to turn around and raise them again,» he said. The macro agenda for the week also includes the publication of the retail sales and the weekly unemployment data (Thursday) and the consumer inflation expectations from the University of Michigan (Friday).
COMPANIES AND OTHER MARKETS
On the business front, and in the results chapter, this Wednesday Cisco will release its figures, while Walmart will do so on Thursday. On the other hand, Intel ha sold his stake of 1.18 million shares in the chip company Arm amid its restructuring and cost savings. In other markets, oil West Texas rises 0.52% ($78.76) and the Brent advances 0.58% ($81.16). For its part, the euro It appreciates 0.27% ($1.1022), and the ounce of gold loses 0.30% ($2,500). In addition, the 10-year US bond yield relaxes to 3.852% and the bitcoin adds 0.02% ($60,711).
