Global Markets Stay Positive Amid US CPI Release Looms
Global markets are showing a positive sentiment ahead of the release of U.S. CPI data for August, which is expected to show steady inflation rates. The crude oil price benchmarks have shed more than 3 percent due to reports of potential talks on shipping through Hormuz. This has provided a boost to markets.
The anticipated headline annual inflation rate of 3.4 percent and the core component at 2.4 percent are expected to be steady. Headline monthly inflation is seen rising to 0.4 percent, while its core component is expected to remain steady at 0.2 percent.
Rate hike expectations from the Fed have softened, with the CME FedWatch tool showing a likelihood of a quarter-percentage rate hike by the Federal Reserve on September 16 at 69.4 percent, down from 72.4 percent the previous day.