Latest News

Stocks topple, dollar jumps after hot U.S. inflation data

European stocks and S&P 500 futures slid on Tuesday, extending their losses, after information showed U.S. inflation slowed less than expected in January.

The dollar and U.S. Treasury yields leapt after the data as investors sharply checked bets on just how much the Federal Reserve will cut interest rates this year.

Futures for the U.S. S&P 500 were last down 1.12%,. extending a fall of 0.35% before the data, while Nasdaq futures. were 1.64% lower.

U.S. stocks have actually been trading at record highs, improved by. the big technology companies and expectations the Fed will soon. cut rates.

The Europe-wide Stoxx 600 index was last down. 0.92%, having traded 0.47% lower before the data. Germany's Dax. fell 0.91%, while Britain's FTSE 100 was off by. 0.44%.

U.S. inflation, as measured by the consumer price index. ( CPI), was up to 3.1% year-on-year in January, from 3.4% in. December. Economic experts polled expected a lower reading. of 2.9%.

The inflation rate has fallen from a peak of 9.1% in June. 2022, causing the Fed to call time on rate of interest walkings and. start thinking about cuts.

The yield on 10-year Treasury notes soared and. was last up 12 basis points at 4.291%, from 4.154% before the. data.

The dollar index, which determines the U.S. currency. against six competitors, rose dramatically and was last up 0.41% at. 104.57, while the euro was down 0.39% at $1.073.

Financiers on Tuesday were pricing in around 94 basis. points of cuts from the Fed by the end of the year, down from. around 112 before the data.

They saw a 40% possibility of the first cut visiting May,. compared to 71% formerly, according to cash market rates.

Around 145 basis points of cuts were priced in at the start. of February, however strong economic data has actually caused financiers to. dial down their expectations.

(source: Reuters)