An afternoon surprise in the shape of hotter US inflation has put Wall Street on the back foot, but in London the reaction is much more muted.
An afternoon surprise in the shape of hotter US inflation has put Wall Street on the back foot, but in London the reaction is much more muted, says Chris Beauchamp, Chief Market Analyst at online trading platform IG. US CPI surprise puts markets in a spin “Today’s market action isn’t panning out as many hoped. The CPI reading has upended the Fed ’s narrative, and now a June move looks even less likely.
US stocks have taken a hit, and the small caps are leading the way to the downside in what is becoming a very risk-off session. The Fed will struggle to convince markets that 2024 will still see three rate cuts, since inflation continues to be a very tricky beast to bring under control.” FTSE 100 shrugs off the news “The reaction across markets has not been universal. The FTSE 100 dropped on the news, but has rapidly found its footing.
US CPI Inflation Wall Street London Market Reaction Fed Rate Cuts FTSE 100
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