It is looking like another gloomy afternoon for stock markets, with today’s US inflation figure offering little comfort to investors, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Stocks mixed in wake of US inflation
“Traders were distinctly unimpressed by today’s inflation report in the US, which failed to energise markets that are nervously awaiting next week’s Fed rate cut. It seems like every major event that might settle the issue of a 25 or 50bps cut turns out to be a damp squib, though the likelihood of a 50bps move does continue to recede. But with oil prices and other commodities having fallen sharply over the past week, there are real worries that sustained economic weakness is around the corner.”
Trump v Harris – much heat but little light
“Given the focus on the Fed, the US election has taken something of a back seat. A dismal Harris performance might have put Trump firmly back in the driving seat, but it still seems impossible to for either candidate to edge firmly into the lead. Such uncertainty is just one more thing to keep investors in check at present.”
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