Hopes for further interest rate cuts by the US Federal Reserve remain alive after yesterday's inflation data. The stock market notes that there were no negative surprises in the numbers. The consumer price data also gives the green light for a 25 basis point interest rate cut next week, ending the debate over whether the Fed will pause just yet.
Although inflation in the USA is still too high, it has not accelerated any further, at least compared to previous months. Overall, the data suggests that prices are continuing to decline, even if inflation is slowing less quickly.
Investors on Wall Street reacted almost euphorically, but the DAX in Frankfurt is also providing new buying impulse. It looks as if the market could pick up the year-end rally again, especially since the European Central Bank is also expected to turn the interest rate screw today.
The inflation data was the last important data this year. They have set the mood by the end of the year and in a positive direction. For the Fed, however, the figures are confirmation of a more wait-and-see monetary policy in the coming year. Only two more rate cuts are expected by the end of 2025.
Charts on today's topics on the financial market, further videos and market comments from Jochen Stanzl can be found throughout the day cmcmarkets.com.
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