Asian Stocks Rise as Investors Await U.S. Core PCE Data
Asian stocks rise as investors await U.S. core PCE data, while concerns over weak GDP and high interest rates impact U.S. stock futures. Chinese data shows weak business activity. Market participants anticipate stable U.S. core PCE data, with potential volatility. Fed policymakers prefer PCE measure due to consumer behavior considerations. Market sentiment cautious due to economic growth concerns. Hong Kong tech stocks outperform, Hang Seng rises. Gold prices hold steady, market analysts watch U.S. consumer confidence. ECB potential rate cut in July discussed. Equiti offers range of trading products including Forex, Indices, Commodities, Shares, ETFs, and Crypto CFDs.
Latest Inflation Data Released, Meeting Expectations
The latest data on inflation shows that the Fed’s preferred inflation measure rose 0.2% in April, meeting expectations. Personal income increased by 0.3%, while spending only rose by 0.2%, falling short of estimates. Goods prices increased by 0.2%, services by 0.3%, reflecting a normalization in the economy. Market reactions were positive, with futures linked to major stock indices edging higher. Overall, these inflation figures provide valuable insights into current economic conditions and will shape future monetary policy decisions.
Inflation Shows Strength in March Despite Market Resilience
Inflation showed strength in March, with the core PCE price index rising by 2.8% from a year ago. Personal spending outpaced income growth, leading to a decrease in the personal saving rate. Despite inflationary pressures, financial markets remained steady, with futures traders adjusting rate cut expectations. Chief Investment Officer George Mateyo cautioned against premature assumptions on rate cuts, emphasizing the need for further developments, particularly in the labor market.
JSE Declines as Investors Await US Inflation Data
The JSE experienced a decline on Friday morning as global markets remained mixed while investors anticipated the release of the Federal Reserve’s preferred measure of inflation. Oanda senior market analyst Craig Erlam noted a sense of caution ahead of the…