1. European Data
Core CPI Flash Estimate y/y came in lower than expected. The inflation data showed a 1.1% change in the price of goods and services (the reading excludes fluctuations in food, alcohol, tobacco and energy prices) Expectations were at 1.2% and in August, the reading came in at 1.2%.
The euro is up 0.3% against the dollar despite the disappointing data.
2. US Economic Data
Weak US economic data was released, with PCE core prices coming in at 0.1%, missing the 0.2% forecast. The disappointing data put added pressure on the dollar, stopping the currency from reaching its best week in a year.
3. Stock Markets Mixed
While European equities are adding to gains, US stocks are feeling lacklustre. Germany’s DAX 30, which is widely thought of as Europe’s proxy, leads the way, up 0.4%. The FTSE 100 is enjoying the sharp fall of the pound, up 0.64%.
US equities are more subdued as Donald Trump’s tax reform agenda lacks the clarity needed to fully analyse the potential effects. After the S&P 500 reached a fresh closing record yesterday, the index is 0.05% lower. The Dow Jones is 0.09% weaker, while the tech-heavy Nasdaq remains an outlier, up 0.14%.
4. Japan’s Inflation
After years of deflation, Japan’s economy may be finally on the mend. Inflation data hit its highest point since 2015 with consumer prices 0.7% stronger year-over-year in August. The stimulation in asset prices was sparked by an increase in energies.
5. Bad News For Cryptos
South Korea banned ICO’s, the cryptocurrency-based fundraising method, stating that it has “serious concern about the fact that the current market funds are being pushed into a non-productive speculative direction.”
Bitcoin is 0.46% higher, Litcoin is 1.9% lower, Ethereum is 2.4% weaker, Ripple is 1.55% down and Dash has given up 3.11%.