GLOBAL MARKETS — Dollar jumps, stocks and bonds dented by hot US inflation data
Core CPI rises 0.3% in September from August, above 0.2% forecast Traders raise likelihood of Fed rate rise this month to about 47%, LSEG data shows Dollar jumps, bond yields rise; stocks fall (Updates throughout with US inflation data, market reaction) By Amanda Cooper LONDON, Oct 14 (Reuters) — The dollar rallied, while US Treasury yields shot higher and stock futures fell on Wednesday, after data showed consumer inflation picked up more quickly than expected in the world's largest economy last month, firming up expectations for another rate rise as early as this month. The Labor Department said its core consumer price index rose 0.3% in September from August, versus economist expectations for a rise of 0.2%. On an annual basis, core CPI, which strips out food and energy prices, rose 2.6%, above forecasts for a rise of 2.5%, while the headline rate rose 3.7%, above estimates for a rise of 3.6%. The dollar rose 0.3% against a basket of currencies, while US 2-year Treasury yields, which are most sensitive to shifts in expectations for inflation and monetary policy, leapt 7 basis points on the day to 4.872%, from around 4.77% earlier on. "While energy prices might be grabbing the he
2% forecast Traders raise likelihood of Fed rate rise this month to about 47%, LSEG data shows Dollar jumps, bond yields rise; stocks fall (Updates throughout with US inflation data, market reaction) By Amanda Cooper LONDON, Oct 14 (Reuters) — The dollar rallied, while US Treasury yields shot higher and stock futures fell on Wednesday, after data showed consumer inflation picked up more quickly than expected in the world's largest economy last month, firming up expectations for another rate rise as early as this month. 2%. 6%. 77% earlier on.
"While energy prices might be grabbing the headlines, today's report suggests the inflation problem runs much deeper. A stronger-than-expected core inflation reading adds to mounting evidence that domestic price pressures are becoming more entrenched, rather than easing," George Brown, senior economist at Schroders, said. "Markets are right to assume that policy will need to become much more restrictive to return inflation to target. 1% earlier on, not far from its highest since April 2025.
322. 5%. More of Wall Street's big banks reported earnings, with Bank of America, which saw profits fall in the third quarter, and also Morgan Stanley, which beat expectations for its third-quarter profit thanks to higher income from investment banking and strong equity trading. 4% after upbeat results.
1% on the day. Sentiment was already fragile prior to the consumer data, given the renewed strength in oil prices following attacks on two vessels in the Strait of Hormuz and after Iranian officials told Reuters they were deploying new tactics to target ships, raising the risk of fresh disruption to energy supplies. 2% at nearly $106 a barrel. com)