- US500 enjoying a steady move higher ahead of Wall Street open. >2700
- PPI release supports CPI yesterday in beating forecasts
- Empire state manufacturing index disappoints
The strong recovery seen following a swoon after Wednesday’s US data release has gained traction today with the US500 firmly higher ahead of the cash open. The market fell 50 points in just a matter of minutes following the CPI beat yesterday to 2627 but it recovered well to end the day higher. After ending the US session at 2699 price has made more headway today and posted a new high at 2720.
The US500 recovered from Yesterday’s selling to end higher and has moved back above the 2700 level today.
Whilst it is not as widely followed today saw the release of the US PPI figures and these also came in better than expected. The PPI final demand showed a 2.7% Y/Y increase against expectations for a rise of 2.4% and even though this marks a decline on the prior it could still be considered an upside surprise.
US PPI came in better than expected, supporting Wednesday’s CPI number in suggesting that inflation is rising faster than previously thought. Source: XTB Macrobond
At the same time as the PPI release we also got some mixed manufacturing data with the Empire State index disappointing and the Philly Fed beating forecasts. A print of 13.1 for the Empire state was below the 17.7 consensus expectation and means it is now 4 consecutive months that this metric has disappointed.
NY Empire state manufacturing index came in worse than expected once more and has been declining for some time now. Source: XTB Macrobond