US inflation sent mixed messages in September, as annual CPI fell to 2.4% from 2.5% in August, while the headline index crept up by 0.2%, according to the US Bureau of Labor Statistics. But core inflation, which excludes food and energy prices, rose to 3.3%, up from 3.2%, marking its first increase in 18 months. Analysts did not expect this and had predicted core inflation would hold steady, Bloomberg reports.

The reading indicates that inflation is “dying, but not dead,” CNN quotes Olu Sonola, Fitch Ratings head of US economic research, as saying.

While inflation is inching closer to the Fed’s 2% target, the latest reading indicates a more moderate path. “Anyone who thought the Fed would lower rates by another 0.50 basis points in November is dead wrong,” said Jamie Cox of Harris Financial Group. Instead, the Fed will likely cut rates at a slower, more “measured pace” Jamie Cox, managing partner at Harris Financial Group told Reuters.

The most probable outcome? A 25 bps rate cut in November, with December still up in the air, Sonola added.

TASI

11,994

+0.6% (YTD: +0.2%)

MSCI Tadawul 30

1,504

+0.5% (YTD: -3.0%)

NomuC

24,523

+0.3% (YTD: 0.0%)

USD : SAR (SAMA)

USD 3.75 Sell

USD 3.75 Buy

Interest rates

5.5% repo

5.0% reverse repo

EGX30

30,762

-1.3% (YTD: +23.6%)

ADX

9,261

+0.1% (YTD: -3.3%)

DFM

4,441

+0.1% (YTD: +9.4%)

S&P 500

5,815

+0.6% (YTD: +21.9%)

FTSE 100

8,254

+0.2% (YTD: +6.7%)

Euro Stoxx 50

5,004

+0.7% (YTD: +10.7%)

Brent crude

USD 79.04

-0.5%

Natural gas (Nymex)

USD 2.63

-1.6%

Gold

USD 2,676

+1.4%

BTC

USD 63,074

+0.1% (YTD: +49.1%)

THE CLOSING BELL: TADAWUL

The TASI rose 0.6% on Thursday on turnover of SAR 5.9 bn. The index is up 0.2% YTD.

In the green: Arab Sea (+9.9%), Al Aseel (+9.1%) and Al Baha (+7.7%).

In the red: Herfy Foods (-4.1%), Sedco Capital REIT (-3.6%) and YC (-2.2%).

THE CLOSING BELL: NOMU-

The NomuC rose 0.3% on Thursday on turnover of SAR 45.2 mn. The index remained flat YTD.

In the green: Keir (+8.1%), Tharwah (+6.0%) and Aqaseem (+5.7%).

In the red: Knowledge Tower (-7.9%), Qomel (-6.2%) and Mayar (-6.0%).

Leave a comment

Your email address will not be published. Required fields are marked *