(AFP) NEW YORK – Stock markets experienced fluctuations on Friday following the release of US data showing a larger-than-expected increase in wholesale inflation. Traders are now assessing the likelihood of further interest rate hikes this year. Government data revealed that wholesale prices in the United States rose in July, mainly due to a surge in services costs. The US markets ended the day with mixed results, as the Nasdaq Composite Index, known for its technology-focused stocks, fell by 0.6 percent, closing the week at 13,644.85. While producer prices have decreased significantly since last year, consumer inflation has been slower to decline, resulting in a mixed reaction in financial markets. “We received inflation data that exceeded expectations, but the market was caught off guard because yesterday’s consumer inflation data was lower than expected,” explained Adam Sarhan from 50 Park Investments. “The market seeks certainty, and right now we are faced with a lot of uncertainty regarding inflation,” he added. European stocks also finished the trading week in negative territory, along with the Hang Seng and Shanghai composite indexes. ‘On track for a soft-landing’ In Britain, positive growth data released on Friday increased the likelihood of further interest rate tightening by the Bank of England, leading to a temporary strengthening of the pound. The Office for National Statistics reported that gross domestic product grew by 0.2 percent in the April to June period, thanks to strong output in June. Inflation, however, remains high. “Today’s GDP data supports the idea that the UK could be on track for a soft-landing similar to what is currently happening in the US,” stated Joshua Mahony, chief market analyst at Scope Markets. “However, this soft-landing narrative could also result in a more prolonged period of monetary tightening, with the Bank of England under no pressure to ease off its current path of increasing interest rates.” In the United States, consumer prices rose last month, but not as much as analysts predicted. This gives the Federal Reserve some leeway to adopt a lighter approach to monetary policy after more than a year of rate hikes. While there is a general expectation that policymakers will refrain from raising borrowing costs at next month’s meeting, analysts believe that additional rate hikes this year are still a possibility. “The inflation data keeps alive the possibility of a further rate hike later in the year, given the tightness in the labor market,” stated Tapas Strickland from the National Australia Bank. In Asian stock market trading, Hong Kong experienced further losses on Friday, despite e-commerce giant Alibaba experiencing a surge in revenue that surpassed expectations. Tokyo’s stock exchange was closed for a public holiday. Oil prices increased as the International Energy Agency raised its forecast for global oil demand growth this year, despite weaknesses in the Chinese economy. “Oil prices have risen by over 20 percent since late June, thanks to actions taken by OPEC+ and additional cuts by Saudi Arabia and Russia, both of which have been extended until September,” remarked Craig Erlam, senior market analyst at Oanda. Key figures around 2045 GMT: – New York – Dow: UP 0.3 percent at 35,281.40 (close) – New York – S&P 500: DOWN 0.1 percent at 4,464.05 (close) – New York – Nasdaq: DOWN 0.6 percent at 13,644.85 – London – FTSE 100: DOWN 1.2 percent at 7,524.16 points (close) – Frankfurt – DAX: DOWN 1.0 percent at 15,832.17 (close) – Paris – CAC 40: DOWN 1.3 percent at 7,340.19 (close) – EURO STOXX 50: DOWN 1.4 percent at 4,321.33 (close) – Hong Kong – Hang Seng Index: DOWN 0.9 percent at 19,075.19 (close) – Shanghai – Composite: DOWN 2.0 percent at 3,189.25 (close) – Tokyo – Nikkei 225: Closed for a holiday – Euro/dollar: DOWN at $1.0952 from $1.0983 on Thursday – Pound/dollar: UP at $1.2699 from $1.2676 – Euro/pound: DOWN at 86.20 from 86.62 pence – Dollar/yen: UP at 144.93 yen from 144.77 yen – Brent North Sea crude: UP 0.5 percent at $86.81 per barrel – West Texas Intermediate: UP 0.4 percent at $83.19 per barrel gsg Your subscription could not be saved. Please try again. Your subscription has been successful. Read Next Don’t miss out on the latest news and information. Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000. !function(f,b,e,v,n,t,s) {if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)}; if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′; n.queue=[];t=b.createElement(e);t.async=!0; t.src=v;s=b.getElementsByTagName(e)[0]; s.parentNode.insertBefore(t,s)}(window,document,’script’, ‘https://connect.facebook.net/en_US/fbevents.js’); fbq(‘init’, ‘2004610026278274’); fbq(‘track’, ‘PageView’); !function(f,b,e,v,n,t,s) {if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)}; if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′; n.queue=[];t=b.createElement(e);t.async=!0; t.src=v;s=b.getElementsByTagName(e)[0]; s.parentNode.insertBefore(t,s)}(window, document,’script’, ‘https://connect.facebook.net/en_US/fbevents.js’); fbq(‘init’, ‘767727496894134’); fbq(‘track’, ‘PageView’); !function(f,b,e,v,n,t,s) {if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)}; if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′; n.queue=[];t=b.createElement(e);t.async=!0; t.src=v;s=b.getElementsByTagName(e)[0]; s.parentNode.insertBefore(t,s)}(window, document,’script’, ‘https://connect.facebook.net/en_US/fbevents.js’); fbq(‘init’, ‘607491687857238’); fbq(‘track’, ‘PageView’);
Denial of responsibility! SamacharCentrl is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
