Wall Street: Nasdaq smashes records
The week's most eagerly-awaited figure, the November consumer price index - which this afternoon appeared to be a non-event - was in fact viewed positively: the absence of bad news is therefore "good news".
US inflation came in as expected at +2.7%, up 0.1 points on October. Excluding energy and food, the underlying annual rate stood at 3.3% last month, also in line with consensus.
On a sequential basis, i.e. between October and November 2024, US consumer prices rose by 0.3%, both unadjusted and excluding energy and food.
US bond markets are reading the CPI a little less bullishly: the yield on 10-year Treasuries, the benchmark for borrowing costs in the US, is up +5.2 basis points to 4.275%, and the yield on 30-year Treasuries is up +7 bps to 4.477%.
Despite this sharp deterioration, according to CME's FedWatch tool, the markets estimate that there is more than an 80% chance that the Fed will cut rates again in a week's time.
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