Morning Bid: Britain’s CPI the next frontier

morning-bid:-britain’s-cpi-the-next-frontier
Morning Bid: Britain’s CPI the next frontier

Tom Westbrook provides a preview of the upcoming day in European and global markets. The focus is on the British inflation data, which could have a significant impact on trading desks if it surprises on the downside. This could lead to a rally in gilts and a decline in the value of sterling.

Forecasts suggest that Britain’s annual CPI will fall to 8.2% in June, with core inflation holding at 7.1%. These levels are considered high, so any unexpected increase would be unwelcome. The market has already priced in additional rate rises from the Bank of England, and if the European Central Bank remains dovish, the BoE may find itself hiking rates alone and at a faster pace.

In Asia, New Zealand’s food prices have kept annual headline inflation higher than expected at 6%. This has led traders to believe that New Zealand interest rates will need to remain higher for a longer period. In Canada, the Bank of Canada’s two core inflation measures have hardly changed, remaining at 3.8%.

China’s slowing economy is casting a shadow over positive data and corporate earnings in the U.S. The Hang Seng index has dropped 1% and is down 5% for the year. Later in the day, Netflix, Tesla, and Goldman Sachs will report their earnings.

On Tuesday, markets reacted positively to better-than-expected profits from Morgan Stanley and other big banks, as well as Microsoft’s announcement of new fees for features within its office software.

Key developments that could influence markets on Wednesday include the release of British CPI and Euro zone final CPI data, as well as U.S. housing starts. Bank of England’s Dave Ramsden will also be speaking. Earnings reports from Netflix, Tesla, and Goldman Sachs are also expected.

The article was written by Tom Westbrook and edited by Muralikumar Anantharaman, adhering to the Thomson RushHourDaily Trust Principles.

About News Team

Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

Have a tip we should know? tips@rhd.news

Most Read

  1. News
    Pandora Papers Financial Leak Shows Us the Secrets of the World’s Rich and Powerful
    3 years ago
  2. Health
    US Supreme Court Rejects J & J TALC Cancer Case Appeal
    3 years ago
  3. Lifestyle
    9 Habits that Drain your Daily Focus and How to Avoid Them
    3 years ago
  4. BUSINESS
    Women’s Demand for Shapewear – the big Trends
    3 years ago
  5. BUSINESS
    Valentino Launches its Cosmetics Line
    3 years ago
  6. Health
    US Promises to Share 60 million Doses of AstraZeneca Vaccines
    3 years ago
  7. Health
    UK Offers Aid Amid Surging COVID-19 Cases in India
    3 years ago
  8. Sports
    Thousands of fans welcome Charlton funeral cortege at Old Trafford
    8 months ago
  9. News
    Brit left fighting for life after train derails in Argentinia
    8 months ago
  10. BUSINESS
    Dubai faces down airline rivals with $50 bln jet orders
    8 months ago
  11. Sunak
    UK’s Sunak brings back Cameron, sacks Braverman
    8 months ago
  12. Sports
    Man United’s Hojlund, Eriksen withdrawn from Denmark team duty
    8 months ago
  13. Health
    Autumn Sneezing Syndrome is on the rise… here’s what you can do
    8 months ago
  14. Canada
    Canada beat Italy to win Billie Jean King Cup for first time
    8 months ago

Follow @rushhourdaily: