US CPI print results in risk-off session

Chris Beauchamp IG

Today's hotter CPI reading has driven investors out of stocks and back towards the dollar, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

Stocks weaken in aftermath of US CPI

Stock markets are taking the US inflation figure very much as one would expect, shedding pre-market gains in the case of the Dow and sinking deeply into the red in the Nasdaq’s and Russell 2000’s. A resurgent US dollar has hit sterling and the euro hard, which helps to account for why the FTSE 100 and Dax are having a better time of it. We can expect the Democrats to shout from the rooftops about rising prices as the clock ticks down to the mid-terms, while European investors will watch anxiously to see if similar signs are appearing in their own inflation figures.

Carnage in gold, silver and crypto as dollar surges

October is once again very much a live month for the Fed, after a seesaw few weeks that has seen the chances of an October move gyrate wildly. The resurgent dollar and revived bond yields have meant doom for precious metals and bitcoin, with the selling in silver particularly brutal. No one wants to hold these in a world of rising rates, though in fairness to bitcoin it is still much higher than in August whereas precious metals continue to plumb new depths.

Author

Chris Beauchamp

Chris Beauchamp has been with IG for four years, and in that time has become a regular commentator and analyst for the financial press and TV, with appearances on all the major financial channels as well as the BBC and Sky News.

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