Beat the street: US inflation data steers US indices down, USD up
Despite earnings from Coca-Cola already today and the prospect of Q4 numbers from both Lyft and Airbnb after the bell it’s all about US CPI.
In the event it came in stronger than expected and has sen the dollar rise against all other currencies. This is taking down equities and gold.
(AI Video Summary)
Fed unlikely to cut rates in March
In today's edition of "Beat the street", Jeremy Naylor talks about what's happening in the stock market and the latest news about consumer prices. He mentions that the Federal Reserve is unlikely to cut interest rates in March, but it might happen in May. He also points out that some stocks, especially those on the Nasdaq, have been underperforming.
One example he gives is Coca-Cola, which saw a decrease in sales in the fourth quarter because they raised their prices. This affected their demand, particularly in North America. Next, he discusses the EUR/USD trade and how the euro is getting weaker compared to the US dollar. He explains that this could result in the euro reaching its lowest point since 14 November. He also talks about how this could impact interest rates.
US tech stocks may have lower start
Moving on to the US markets, Naylor predicts that tech stocks, like those on the Nasdaq, will have a lower start. He mentions that the Dow Jones is also experiencing a slight decline, but it's not seen as a big deal. He describes the current market situation as being priced for perfection, but not actually getting it.
Strong dollar impact on gold and Bitcoin
The video then touches on the impact of the stronger dollar on commodities, such as gold and Bitcoin, which have seen declines. The German DAX 40 is also going down because of higher-than-expected US inflation numbers.
Earnings reports and market performances
He then mentions that upcoming earnings reports from companies like Airbnb and Lyft are being anticipated. They expect Airbnb's stock price to rise, while Lyft's is decreasing. Technical analysis is provided for both stocks.
Other stocks, like Boeing and Procter & Gamble, are highlighted for their market performance. The influence of the stronger dollar on oil prices is also discussed. Naylor mentions that OPEC predicts strong oil demand with no signs of consumption peaking.
To wrap things up, the video summarises the market's reaction to the US inflation numbers and predicts a lower start for the US markets. Naylor expects the euro-dollar trade to continue weakening and note the impact of the stronger dollar on other currencies and commodities.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Seize your opportunity
Deal on the world’s stock indices today.
- Trade on rising or falling markets
- Get one-point spreads on the FTSE 100
- Unrivalled 24-hour pricing
See opportunity on an index?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on an index?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from one point on the FTSE 100
- Trade more 24-hour indices than any other provider
- Analyse and deal seamlessly on smart, fast charts
See opportunity on an index?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
