Overnight events and price action: CPI's firmer headline was the catalyst - ANZ
|Analysts at ANZ noted the overnight events and price action.
Key quotes:
"Some recent correlations in markets broke down overnight with the higher CPI print causing yields to increase, however equites erased a knee-jerk drop to trade higher.
The USD fell and gold spiked.
All eyes were on CPI with a firmer headline and core print driving significant market moves.
US treasuries traded immediately higher and have not retraced. The 2 year is up 6bps to 2.16% and 10 year rose 7bps to 2.90%.
Yield moves in Europe were muted. US equity futures were sharply lower following the CPI print, but quickly rebounded on the open and have trended in positive territory.
S&P is up 0.5%, with Dow relatively unchanged. European bourses rebounded in tow with Euro Stoxx 50 up 0.9% and DAX up 1.2%.
The USD reacted negatively to the data, with NZD leading gains in the G10. Gold spiked on the inflation data, up 1.3% to $1350/oz.
Oil climbed after EIA suggested a smaller inventory build than the bearish API report."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.