News

Published: Apr 11, 2023
Updated: Apr 11, 2023

Global Markets insights:US Futures Stable Ahead of Inflation Data Release; Experts Predict Drop in Inflation Figures

The global market insights report reveals that US futures remained stable on April 11, 2023, as investors awaited the release of inflation data on the following day. The Dow Jones Industrial Average added 100 points during the regular session, while the S&P 500 and Nasdaq remained flat. Meanwhile, the US 2-year bond yield saw a rise of 18 basis points since Thursday, reaching 4.01%.

Expectations for March Inflation Data

The report indicates that the US inflation rate for March 2023 is expected to be at 5.2% compared to the 6% MoM in February. The consensus among experts predicts that the figure will ease, citing a pullback in travel and hotel, along with modest declines in apparel and electronic prices driven by reduced demand.

Sticky Food Prices Falling and Cooling Off Job Market

According to the report, sticky food prices are now coming down in the US and EU, providing some relief in the inflation numbers. Additionally, the cooling off in the job market is comforting for the Federal Reserve. The US commercial bank lending also saw a drop of $105 billion during the second half of March, which could further indicate a possible reduction in inflation.

The upcoming release of inflation data in the US has garnered significant attention from investors worldwide. Experts predict that the inflation rate will decrease, primarily driven by reduced demand in the travel and hospitality industry, along with modest declines in apparel and electronic prices. Falling sticky food prices and a cooling job market could also provide some relief to the inflation numbers