The S&P 500 has pushed even further above 5,000 ahead of US inflation data tonight. India’s inflation rate decelerated in line with expectations in January as food price rises slowed.
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The S&P 500 rose almost 0.4% to nearly 5,050 in late trade on strength in AI-linked stocks and after a US$26 billion US shale merger boosted sentiment.
ANZ’s Head of FX Research Mahjabeen Zaman says Japanese authorities may comment to try to slow the yen’s slide towards 150, but are unlikely to intervene or hike rates early to bolster the currency.
Mahjabeen says markets are looking for annual US CPI inflation of below 3% in data due later tonight. The US dollar is unlikely to budge without a big miss.
India’s annual inflation rate fell to 5.1% in January from 5.7% in December, as price inflation for food staples like cereals, pulses and spices fell, ANZ Economist Dhiraj Nim says.
Dhiraj says the Reserve Bank of India could be ready to cut rates in the third quarter this year if inflation continues to ease.
Cheers
Bernard
PS: Look out tomorrow for market reaction to the US CPI data out later today.
