Inflationary Pressure In The US Is Easing

Source: DepositPhotos

The US equities ended Wednesday mixed. By the end of the day, the Dow Jones (US30) slipped by 0.04%. The S&P 500 (US500) rose by 0sdaq.26%. The Tech‑heavy Na (US100) closed in positive territory at 0.54%. Traders reacted to the fresh inflation report: annual CPI slowed to 3.4%, while the core reading fell to 2.5%, matching market expectations and easing pressure on the Federal Reserve. Nevertheless, uncertainty surrounding Middle Eastern energy supplies continues to keep investors cautious.

On Wednesday, Germany’s DAX (DE40) rose by 0.26%, France’s CAC 40 (FR40) closed down 0.46%, Spain’s IBEX 35 (ES35) slipped by 0.05%, and the UK’s FTSE 100 (UK100) ended the session down 0.10%. Investors preferred to lock in profits amid broad uncertainty linked to the geopolitical conflict in Iran and questions about reopening shipping through the Strait of Hormuz. Additional pressure on the market came from domestic economic news and corporate earnings affecting several key sectors.

Silver prices surged to around $66 per ounce, hitting an eight‑week high. The US inflation report provided strong support for the market. Geopolitical tensions in the Middle East remained an additional source of uncertainty. Traders closely monitored developments around the Strait of Hormuz following statements by Pakistan’s defense minister that Washington and Tehran were close to reaching an agreement on restoring shipping. Beyond macroeconomic and geopolitical drivers, silver prices continued to benefit from strong physical and industrial demand.

Crude‑oil prices remained highly volatile, hovering near $83 per barrel. The market continued to assess conflicting geopolitical signals regarding prospects for a US-Iran agreement to unblock the Strait of Hormuz, while negotiations effectively stalled amid increasingly confrontational rhetoric. The situation was further aggravated by official US Energy Information Administration (EIA) data: commercial crude inventories jumped by 17.4 million barrels last week, marking the largest weekly increase since early 2023 and intensifying concerns about oversupply amid ongoing logistical risks.

In Asia, Japan’s Nikkei 225 (JP225) rose by 0.83%, China’s FTSE China 50 closed higher by 0.41%, Hong Kong’s Hang Seng (HK50) fell by 0.83%, and Australia’s ASX 200 (AU200) ended yesterday down 0.45%.

The New Zealand dollar (NZD) fell to 0.583 USD, hitting a two‑week low. The main catalyst was the quarterly survey from the Reserve Bank of New Zealand (RBNZ), which showed a notable easing in price pressure: two‑year inflation expectations fell to 2.3% (from 2.5% the previous quarter), while one‑year expectations dropped to 2.6% from 3.4%. This prompted investors to question the need for further aggressive tightening by the regulator, although the consensus still predicts a 25‑basis‑point rate hike at the September meeting.

On Thursday, the offshore yuan weakened to around 6.74 per dollar, fully erasing the gains of the previous session. Pressure on the Chinese currency came from the daily fixing by the People’s Bank of China (PBoC), which was significantly weaker than market expectations: the reference rate was set at 6.7888 per dollar, 418 points below outlooks. Although seasonal factors may support the yuan as September approaches, its strengthening potential will largely depend on the PBoC’s strategy in setting the daily midpoint.

• S&P 500 (US500) 7.748,50 +20.30 (+0.26%)

• Dow Jones (US30) 53.770,27 -21.58 (-0.04%)

• DAX (DE40) 26.331,07 -60.35 (-0.23%)

• FTSE 100 (UK100) 10.833,15 -11.04 (-0.10%)

• USD Index 99.99 +0.16 (+0.16%)

News feed for: 2026.08.13

• Japan Producer Price Index (m/m) at 02:50 (GMT+3) – JPY (MED)

• New Zealand Inflation Expectation (m/m) at 06:00 (GMT+3) – NZD (MED)

• Sweden Inflation Rate (m/m) at 09:00 (GMT+3) – SEK (MED)

• UK GDP (q/q) at 09:00 (GMT+3) – GBP (MED)

• UK Industrial Production (m/m) at 09:00 (GMT+3) – GBP (MED)

• UK Manufacturing Production (m/m) at 09:00 (GMT+3)

• UK Trade Balance (m/m) at 09:00 (GMT+3) – GBP (MED)

• Switzerland Producer Price Index (m/m) at 09:30 (GMT+3) – CHF (LOW)

• Norway Norges Bank Interest Rate Decision at 11:00 (GMT+3) – NOK (HIGH)

• Eurozone Industrial Production (m/m) at 12:00 (GMT+3) – EUR (LOW)

• US Producer Price Index (m/m) at 15:30 (GMT+3) – USD (MED)

• US Initial Jobless Claims (w/w) at 15:30 (GMT+3) – USD (MED)

• US Natural Gas Storage (w/w) at 17:30 (GMT+3) – XNG (HIGH)