Only good news coming your way today, except for the cost of an English breakfast! No comments on politics, no comments on conflicts around the world, we’re just focusing on the encouraging news around inflation. Weaker inflation data is loved by the markets and as we expected, most assets have enjoyed the ‘bounce’ this week.
Inflation has tumbled across the developed world and it’s interesting how political parties are now taking credit. Sorry, I said no politics!
So, what’s being going on?
Agenda:
- US inflation tumbles
- UK inflation halves
- How have the markers reacted?
- Investing cash
- The cost of an English breakfast!
- Summary
US inflation tumbles
The latest inflation figures in the US showed it fell to 3.2%, the first decline in four months. The figure was slightly lower than expectations.
This suggests that interest rate rises are finished, and the markets welcomed the news. According to the CME FedWatch tool, as reported in Investment Week, the odds for the Federal Reserve to keep interest rates on hold have increased from 85.5% to 99.7%.
The main reason was a fall in energy prices.
Continues….
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