New York / London — After US consumer inflation surged to its highest since 1990, global stock market gauges fell on Wednesday and the dollar was built on previous rises.
Real yields on US Treasuries fell to record lows, and gold prices reversed the course and rose by more than 1%. This is because the rise in the consumer price index in October boosted the attractiveness of metals as a hedge against inflation.
According to the Ministry of Labor, the CPI rose 0.9% after rising 0.4% in September. The biggest increase in four months pushed the annual growth rate of the index to 6.2%. This was the largest year-on-year increase since November 1990, with a 5.4% leap in September.
The US consumer price index rose 0.4% in September, then 0.9% in October, accelerating 6.2% in the 12 months to October, the largest year-on-year rise since November 1990. rice field. 0.6%, core CPI 0.4%.
Joseph Labolguna, Chief Economist of the Americas in Natixis, New York, said:
Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago, said the Fed is now obsolete. “They may now be forced to increase rates sooner or later,” he said.
MSCI’s national global index fell 0.21%, while the Pan-European FTS Eurofirst 300 index rose 0.28%.
On Wall Street, the Dow Jones Industrial Average fell 0.11 percent, the S & P 500 fell 0.15 percent, and the Nasdaq Composite fell 0.44 percent.
The dollar index, which tracks greenbacks and baskets of six currencies, rose 0.605% to 94.577.
The euro fell 0.66% to $ 1.1515 and the yen rose 0.91% to $ 113.8800.
In the morning trading, yields on 10-year Treasury inflation protection securities fell to -1.243% and 30-year yields fell to -0.607%.
The 10-year TIPS break-even point is the last at 2.72%, indicating that the market will have an average annual inflation rate of about 2.7% over the next 10 years.
Benchmark 10-year Treasury yields rose 6.6 basis points to 1.5153% after reaching a six-week low of 1.4150% on Tuesday.
Eurozone bond yields have also risen, with block benchmark Germany’s 10-year yield rising 3.4 basis points to -0.259%, above Tuesday’s seven-week low of -0.299%. rice field.
Crude oil prices fell after a modest rise in US crude oil inventories the day after industry reports suggested tightening inventories.
Brent crude fell from $ 0.22 a barrel to $ 84.56. US crude fell $ 0.44 and traded at $ 83.71 a barrel.
Brent crude oil futures fell 37 cents at $ 84.41 a barrel at 10:49 EST (1549 GMT). Crude oil futures on West Texas Intermediate (WTI) fell 79 cents (0.9%) to $ 83.36.
Spot gold rose 1.1% to $ 1,851.00 per ounce.
Herbert Rush and Carolyn Corn
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