On Monday, the UK's FTSE 100 index experienced a slight decline influenced by the performance of mining and energy stocks. The decrease in metal prices resulted from weak economic data from China, the largest consumer of commodities. Simultaneously, the dip in crude oil prices affected the energy sector. Key Points: ·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weak Chinese economic data affects metal prices·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decline observed in the FTSE 100 and FTSE 250 midcap index·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pressure mounts on Chinese policymakers to stimulate the economy·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Base metal prices decline, impacting industrial metal miners·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Energy stocks experience a decrease in line with lower oil prices·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Focus on UK consumer prices data as inflation eases in the US·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noteworthy US inflation figures and disinflation pattern·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;UK inflation at a high of 8.7% YoY in May·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Falling residential home prices in the UK due to rising mortgage costs·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decline observed in housing-related stocks·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FTSE 100 drops over 7% since February's record high·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gresham House sees a significant surge in stock price·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Johnson Matthey receives a "buy" rating from Deutsche BankThe UK's FTSE 100 index experienced a minor setback of 0.1%, accompanied by a similar decline of 0.1% in the more domestically-focused FTSE 250 midcap index. The impact of this decline can be attributed to the release of weak economic data from China, which indicates a frail pace of growth in the second quarter. This decline in momentum after the COVID-19 pandemic has led to increasing pressure on Chinese policymakers to implement additional stimulus measures to stabilize economic activity. The prices of most base metals faced downward pressure, resulting in a 1.9% dip for industrial metal miners. Moreover, heavyweight energy stocks also experienced a decline of 0.4% due to lower oil prices. This convergence of factors has created an atmosphere of caution among investors, with a keen eye on short-term inflation in the UK. Alan Kinnaird, the business development manager at Walker Crips Investment Management, believes that the current inflation figures in the United States are particularly intriguing, especially considering the emergence of a disinflation pattern. In May, UK inflation hit an alarming 8.7% year-on-year. Additionally, an industry survey has indicated a fall in asking prices for residential homes in Britain during July. This decline can be attributed to rising mortgage costs and constraints on buyer affordability, which have prompted sellers to temper their price expectations. Consequently, stocks related to housing, such as real estate and homebuilders, witnessed a decline of nearly 0.5% each. The FTSE 100, which focuses significantly on commodities, has experienced losses of more than 7% since hitting record-highs in February. The fluctuation in oil and metal prices has been driven by concerns surrounding demand in China. The uncertainty associated with these commodities has played a significant role in affecting the overall performance of the FTSE 100 Index.Among individual stocks, Gresham House observed a significant surge of 55.5% in its stock price. This surge followed the announcement by U.S.-based investment firm Searchlight Capital Partners that it intends to acquire the alternative asset manager for £469.8 million ($614.9 million). Furthermore, Johnson Matthey experienced a gain of 0.9% after Deutsche Bank upgraded the chemicals maker's rating from "hold" to "buy." In Summary, the UK's FTSE 100 faced a slight decline driven by weak economic data from China. The decrease in metal prices and lower oil prices impacted mining and energy stocks. Attention is now directed towards UK consumer prices data, while also considering the easing inflation in the United States. UK inflation remains high, and the housing market has experienced a fall in prices due to rising mortgage costs. The FTSE 100, heavily dependent on commodities, has suffered significant losses since its record high in February. Individual stocks such as Gresham House and Johnson Matthey have witnessed notable changes in their stock prices following specific events and market upgrades.

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Dive into the impact of weak Chinese data on metal and energy stocks within the UK's FTSE 100.

FTSE 100 Slips: Weak Chinese Data Hits Metal and Energy

UK's FTSE 100 Slips as Weak Chinese Data Impacts Metal and Energy Stocks

Optimistic Outlook as Wall Street Continues to Rise Amid Inflation Data In recent days, global stock markets have experienced a surge in gains, while the value of the dollar remains close to a 15-month low. This wave of investor optimism was sparked by favorable U.S. inflation data, leading many to believe that the U.S. Federal Reserve is approaching the conclusion of its rate-hiking cycle. On Wednesday, data revealed that U.S. consumer prices had grown at the slowest pace in over two years. Following this, Thursday's report indicated the smallest increase in U.S. producer inflation in nearly three years. Additionally, the government reported on Friday that U.S. import prices had dropped by 0.2% last month, accompanied by a significant rise in U.S. consumer sentiment to its highest level in nearly two years. MSCI World Equity Index Surges to New Highs As investors anticipate a more moderate inflation outlook, the MSCI World Equity index (.MIWD00000PUS) has reached its peak for this year. On Friday, the index experienced a 0.1% increase, accumulating gains throughout the week and putting it on track for its most substantial weekly rise since November 2022 and its highest levels since early 2022. Wall Street's Fifth Consecutive Rise Fueled by Strong Earnings Wall Street continues its upward trajectory, with Friday marking the fifth consecutive day of gains. The second-quarter earnings season commenced on a positive note as some of the country's top financial institutions, including JPMorgan Chase (JPM.N) and insurer UnitedHealth Group (UNH.N), delivered robust performance reports.The Dow Jones Industrial Average (.DJI) rose by 0.45% to reach 34,549.15, while the S&amp;P 500 (.SPX) gained 0.10%, closing at 4,514.5. The Nasdaq Composite (.IXIC) also experienced growth, increasing by 0.12% to 14,155.78. European Stock Indexes Show Minimal Change In contrast, European stock indexes exhibited minimal change, with the STOXX (.STOXX) experiencing a slight decrease of 0.11%, and London's FTSE 100 dipping by 0.08% (.FTSE). Germany's DAX declined by 0.2%, retracing some of its recent gains (.GDAXI). Expert Advises Cautious Approach Amidst Concerns Michele Morganti, senior equity strategist at Generali Investments in Rome, advises caution given the current market conditions. He emphasizes that price-to-earnings ratios are "exuberant" compared to real rates and economic growth, especially in the United States. Morganti also highlights persistent sticky core inflation, tightening credit conditions, and macro indicators pointing downwards as factors contributing to the need for short-term caution in the equity market. U.S. Bond Yields Experience Modest Recovery After a period of sharp declines earlier in the week, U.S. government bond yields have slightly bounced back on Friday. The yield on 10-year Treasury notes increased by 5.7 basis points to 3.817%. The two-year U.S. Treasury yield, which typically aligns with interest rate expectations, rose by 14 basis points to 4.751%. Euro Zone Government Bond Yields Remain Steady Euro zone government bond yields displayed minimal fluctuations on Friday, holding onto their gains following a robust two-day rally triggered by subdued U.S. inflation figures. Money market traders still anticipate a 25 basis point rate hike by the Fed on July 26, although they have lowered the likelihood of another rate hike later this year. Norman Villamin, chief group strategist at UBP, suggests that another Fed rate hike is probable in July, but the September meeting remains uncertain. He acknowledges that we are likely approaching the end of the rate hike cycle. However, Villamin points out that above-target inflation is expected to persist in the long term, making it challenging to achieve a return to the 2% inflation target. Weaker Dollar Persists The value of the dollar continues to hover near a 15-month low, marking its most significant weekly decline since November due to softening U.S. inflation data. Meanwhile, the euro remains steady at $1.1232, reaching its highest level in over 16 months. Oil Markets Supported by U.S. Demand and Supply Disruption In the oil markets, the global benchmark Brent crude maintains a price around $80 per barrel on Friday. Bullish sentiment regarding U.S. demand has been bolstered by supply disruptions in Libya and Nigeria. Brent crude closed at $79.87, experiencing a decline of 1.83% on the day, while U.S. crude fell by 1.91% to $75.42 per barrel. Gold Prices Experience a Small Decline Following five consecutive sessions of gains, gold prices dipped slightly on Friday. Growing expectations of a pause in U.S. rate hikes have positioned bullion for its most substantial weekly gain since April. Spot gold declined to $1,960.24 per ounce. Summary With the release of favorable inflation data and positive earnings reports, global stock markets have seen significant gains. The MSCI World Equity index reached new highs, while Wall Street extended its winning streak. However, caution is advised by experts due to exuberant price-to-earnings ratios, persistent core inflation, and macro indicators signaling a potential slowdown. The dollar continues to weaken, and oil markets benefit from disrupted supply and optimistic U.S. demand. Gold prices experienced a slight decline but remain influenced by expectations regarding U.S. rate hikes. These recent developments are shaping the global financial landscape and have captured the attention of investors worldwide.

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Catch up on the market buzz as Wall Street rallies on the back of cooler inflation and positive earnings, driving the market gains.

Market Update: Wall Street Surges Higher on Cooler Inflation and Positive Earnings

Wall Street Extends Climb: Cooler Inflation and Positive Earnings Drive Market Gains

Key Takeaways <ol><li>Tech-related Shares Rally as US Inflation Cools Down</li><li>June Producer Prices Show Minimal Rise; Core PPI Subsides</li><li>Dow, S&amp;P 500, and Nasdaq Close with Gains of 0.1%, 0.9%, and 1.6%, respectively</li></ol> The US stock market continued its upward momentum on Thursday, with the Nasdaq experiencing its second consecutive day of over 1% growth. This surge came after data revealed that the annual increase in US producer inflation was the smallest it had been in almost three years. The latest reports provide further evidence of subsiding inflation pressures. Additionally, the Consumer Price Index (CPI) report published on Wednesday indicated that US consumer prices had witnessed their smallest annual increase in over two years. As a result, market sentiment suggests that the Federal Reserve will halt its rate hikes after the anticipated 25 basis points increase later this month. Mona Mahajan, Senior Investment Strategist at Edward Jones, stated, "PPI is another confirmation this week that inflation continues to trend in the right direction even as we see better overall labour market and consumer data. That is a good sign."The producer price index showed a modest climb of 0.1% over the 12 months leading up to June. This marks the smallest year-on-year gain since August 2020, following a 0.9% increase in May. The S&amp;P 500 received significant support from technology-related shares, particularly megacaps, which gained 2.7% and achieved a record-high closing. Additionally, US chip stocks rallied, with Nvidia reaching a new all-time high during the session and the Philadelphia semiconductor index rising by 2%. Despite the generally positive tone of the day, a separate report revealed an unexpected decrease in weekly jobless claims, indicating a persistently tight labour market. Inflation and Market Performance The Dow Jones Industrial Average rose by 47.71 points, or 0.14%, closing at 34,395.14. The S&amp;P 500 gained 37.88 points, or 0.85%, ending at 4,510.04, while the Nasdaq Composite added 219.61 points, or 1.58%, reaching 14,138.57. <img src="https://cdn.forexoverflow.io/images/1689315766886-0dz0w2iqdz3h392-us-inflation-gauges-1.png"> Source from Reuters&nbsp; US chip stocks, including Nvidia, experienced significant gains, with Nvidia attaining a new record high during the session. The Philadelphia semiconductor index also rose by 2%.Despite the optimistic outlook, a separate report indicated an unexpected decline in weekly jobless claims, suggesting a tight labour market. Market focus is now shifting to the second-quarter US earnings season, which commences this week. JPMorgan Chase, whose quarterly results are due before the opening bell on Friday, witnessed a 0.5% increase in its share value. Alan Lancz, President of Alan B. Lancz &amp; Associates Inc. in Toledo, Ohio, stated, "We might have another quarter here where the positive sentiment will continue. As long as expectations and guidance are in line, that's what a lot of institutional investors will be looking at." Delta Air Lines remained relatively stable after an initial increase due to news of a raised full-year profit outlook attributed to the ongoing post-pandemic travel boom. PepsiCo shares rose by 2.4% after the company revised its annual revenue and profit forecasts for the second time. Google parent Alphabet Inc witnessed a significant surge of 4.7% in its shares. The company announced the launch of its artificial intelligence chatbot, Bard, in Europe and Brazil, alleviating concerns regarding regulatory issues overseas. Market strategists have highlighted that the recent weakness in the US dollar may have positive implications for the future earnings of US multinational companies.The total trading volume on US exchanges amounted to 10.82 billion shares, slightly lower than the 11.11 billion average for the last 20 trading days. Advancing issues outnumbered declining ones on the NYSE with a ratio of 2.90-to-1, while on the Nasdaq, advancers had a 1.93-to-1 ratio advantage. The S&amp;P 500 witnessed 51 new 52-week highs and one new low, while the Nasdaq Composite recorded 135 new highs and 39 new lows.

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Catch up on the market buzz as Wall Street maintains its winning streak, extending recent gains even as US inflation cools down.

Wall Street Ends Higher, Extending Recent Gains Amid Cooling US Inflation

Market Update: Wall Street Ends Higher, Extending Recent Gains Amid Cooling US Inflation

<h2>Asian Equities Set for Record-Breaking Week Amid US Inflation Slowdowns</h2> Asian markets are poised to end the week on a high note, marking their most successful week of the year. The latest data indicating a deceleration in US inflation has fueled optimism that the Federal Reserve will halt rate hikes, sparking a robust rally across global markets. <h2>Encouraging Signs of Inflation Deceleration</h2> Investors welcomed the smallest increase in US factory gate inflation in almost three years. This positive development follows a 12-month slowdown in US consumer price inflation, bringing it to its lowest annual rate in over two years. <h2>Anticipating a Smooth Economic Transition</h2> While the full impact of the 500 basis points of rate hikes implemented by the Federal Reserve since March of last year is yet to be fully realized, the prevailing optimism surrounding a "soft landing" scenario has driven down the value of the US dollar and propelled asset prices upward. <h2>Asia's Economic Indicators and Market Impact</h2> Despite the release of key Asian economic indicators on Friday, such as Singapore's GDP, Japanese industrial production, and Indian wholesale price inflation, market sentiments remain largely unaffected. The prevailing bullish outlook appears to overshadow any potential disappointments. <h2>Global Market Conditions Benefit from Weaker Dollar and Lower Bond Yields</h2> The decline in the value of the US dollar, coupled with decreasing US bond yields, has created favorable financial conditions for global markets, particularly emerging economies. As a result, MSCI's World stock index surged by more than 1% on Thursday, reaching its highest point since April of last year. Additionally, both the S&amp;P 500 and Nasdaq reached fresh 15-month highs, while the MSCI Asia ex-Japan index experienced a notable jump of over 2%. <h2>Asia-Pacific Shares' Impressive Performance</h2> The broadest index of Asia and Pacific shares has witnessed a remarkable 5% increase this week, positioning it for the most outstanding performance since November. Notably, this surge compensates for the relatively lacklustre year-to-date gains, emphasizing the significant gap between these markets and their US, European, and Japanese counterparts. <h2>China's Struggles Impacting Global Markets</h2> China's economic woes, including sluggish growth, deflation, and a complex interplay between a devaluing exchange rate and widespread financial market sell-offs, have significantly weighed down Asia-Pacific shares. The latest economic signals from China continue to dampen market sentiment, with a 12.4% slump in exports in June—the most significant decline in three years—and a 6.8% drop in imports, both exceeding analysts' expectations. <h2>Positive Market Response to Beijing's Tech Sector Reassurance</h2> Despite the prevailing challenges, Chinese shares managed to rally over 1% following an announcement from Beijing signaling the end of its tech sector crackdown. Premier Li Qiang held discussions with leading tech firms, urging them to take greater measures to support the economy. <h2>Ongoing Dialogue Between China and the US</h2> High-level talks between Chinese and US officials persist, addressing various issues, including trade. This ongoing dialogue is expected to mitigate geopolitical risks, albeit to a limited extent.<h2> </h2><h2>Key Developments for Friday's Market Direction</h2>﻿Market participants eagerly await several key developments that could shape Friday's market trends, including:<ul><li>Singapore's Q2 GDP report</li><li>Japan's May industrial production figures</li><li>India's June wholesale price inflation data</li></ul>As these reports are released, market dynamics may experience shifts based on the outcomes, potentially influencing investor sentiment and asset valuations. In summary, Asian equities are experiencing their best week of the year, driven by positive market sentiment following signs of slowing U.S. inflation. The weakening dollar and falling U.S. bond yields have created favorable financial conditions globally. However, China continues to face economic challenges, while ongoing dialogue between Chinese and U.S. officials may help reduce geopolitical risks. Investors should closely monitor key developments such as Singapore's GDP, Japan's industrial production, and India's WPI inflation figures for further insights into market trends.

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4 articles published related to#us inflation

UK's FTSE 100 Slips as Weak Chinese Data Impacts Metal and E...

Wall Street Extends Climb: Cooler Inflation and Positive Ear...

Market Update: Wall Street Ends Higher, Extending Recent Gai...

Weekly Market Highlight: US Inflation Cheer Drives Stocks to...

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