Global Markets: US Inflation and Trade Optimism

Global Markets Focus on US Inflation Data

The summit between the leaders of the US and China on October 30 has eased trade-related concerns, while global investors' attention has turned to the US CPI data to be released today.

Technology Stocks on Wall Street Rising

The positive atmosphere in the markets, combined with trade optimism, has led to an increase in technology stocks, leading the S&P 500 to rise 0.6% to 6,738, approaching record levels. Tesla Inc. rebounded after announcing its earnings, leading the rise among major tech companies. The Nasdaq 100 index also increased by 0.9%.

Investors Question Blemished Outlooks

Mark Hackett from Nationwide stated, "Valuations continue to be the best argument for those in a downturn. However, the constant approach of buying the dip is causing even pessimistic investors to question their outlooks."

Intel and Asian Markets on the Rise

The earnings report released after market close showed that Intel has returned to profitability and provided an encouraging revenue forecast, leading its shares to gain value in after-hours trading. Additionally, US and European futures are also showing an increase. Asian markets are generally positive amid expectations that the Trump-Xi meeting will alleviate trade tensions. The MSCI Asia Pacific Index rose by approximately 0.5%, led by technology stocks. For instance, the shares of South Korean chipmaker SK Hynix Inc. experienced a 6.9% increase.

Noteworthy Developments in Currency and Commodities

The Bloomberg Dollar Index, which remained flat on Thursday, recorded a limited increase ahead of the US CPI data. The Canadian dollar lost 0.11% against the US dollar following President Trump’s decision to end trade talks. Gold, which has recently been deemed overly valuable, is preparing to correct and end its nine-week upward trend this week. Gold is trying to stabilize above 4,140 dollars per ounce and is heading toward its highest losses since May with a 3% decline.

Oil prices are fluctuating due to US sanctions imposed on major Russian producers. Brent crude prices fell to 65 dollars per barrel on Friday, while still showing an increase of around 7% on a weekly basis. WTI remains below 62 dollars.