The fears of stagflation in the United States were leaked in world markets this Thursday, after inflation data that exerted strong pressure on the US treasure bonds and caused the sale of public debt everywhere, from Germany to Japan.
The main Wall Street indices declined after knowing that the producer’s price index, closely guarded by investors in search of signs of inflationary pressures derived from US trade tariffs, rose 0.9% in July with respect to the previous month, exceeding the consensus forecasts of an increase of 0.2%.
The performance of the bonds to two years, which follows the expectations of monetary policy, improved 4.3 basic points, to 3.73%, by fading the expectations of large cuts of interest rates of the Federal Reserve (Fed).
The monetary markets showed that the operators are still waiting almost unanimously that the Fed lowers the cost of loans next month, after having maintained their main rate in 4.25-4.5% since December.
However, bets to a 50 basic points cut, encouraged Wednesday by the comments of the Treasury Secretary, Scott Besent, quickly faded on the market.
“Inflation is beginning to appear. It is not yet massive, but it could certainly continue in the coming months,” said Russell Investments.
Lee also: Fed will keep an interest rates of regular size after high inflation data in the US
Markets react to US inflation data
In the exchange markets, the dollar index rose 0.3% and the euro reduced 0.4%, to $ 1.166.
The Stoxx 600 Paneuropeo Index earned 0.2% and the measure of world actions of MSCI yielded 0.2% after playing historical maximums in the two previous sessions thanks to the strong season of business benefits and the anticipated monetary relaxation.
*On the other hand, the raw material markets showed some signs of geopolitical tension before the summit that the president of the United States, Donald Trump, and his Russian counterpart, Vladimir Putin will celebrate on Friday.
Crude prices added more than 1% and cash, which tends to be appreciated when investors focus on geopolitical and inflation risks, remained 0.2%, to $ 3346 an ounce.
With Reuters information
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