Kospi and Nikkei Rally as US PPI Cools to 4.7% Annual, Reducing Fed Hike Odds Below 40%
US producer price index data showed annual inflation cooling to 4.7% from 5.5% in June, reducing the probability of a September Fed rate hike to below 40%
Key points
- US PPI cooled to 4.7% annually in July, below June 5.5% and reducing September Fed hike odds to below 40%
- Kospi and Nikkei rallied as Asian markets priced in reduced rate-hike risk and improved risk appetite
- Watch the CPI release to confirm disinflation trend; labor market data is the key variable that could reverse the Fed pause thesis
How do you see this playing out for markets? Discuss below.
Read the full analysis on market.news
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