France’s annual inflation rate hit its highest level since February 2024, while in Italy, inflation was at 4.2%, nearly a full percentage point above the rate recorded in August.
asserted
inflation → hit → August
In Germany, the annual consumer price inflation rate is expected to have risen to 3.3% in September from 2.9% in August and 2.8% in July.
asserted
rate → expect → July
Analysts now expect euro-wide inflation figures on Friday to be stronger than expected, putting further pressure on the European Central Bank to raise interest rates.
asserted
figures → expect → rates
Mariana Monteiro, analyst at JPMorgan, thinks euro area headline HICP inflation may increase from 3.2% on-year in August to 3.9% on-year in September, higher than her original 3.6% on-year forecast.
uncertain
inflation → think → forecast
The Dow Jones Industrial Average was up 0.1% at the time of the closing bell in London.
asserted
Average → close → London
The S&P 500 was 0.6% higher, and the Nasdaq Composite climbed 1.0%.
asserted
Composite → climb → ?
Figures in the US showed the economy grew faster-than-expected in the second quarter, while a closely watched inflation figure cooled more than projected.
asserted
figure → show → quarter
The Bureau of Labour Statistics said US gross domestic product rose 2.2% on an annualised basis quarter-on-quarter, upwardly revised from an initially reported 1.5% increase.
asserted
product → say → increase
Separate data showed the core personal consumption expenditures price index rose 3.0% on-year in August, the same pace of growth as in July.
asserted
index → show → July
However, growth of 3.3% had been expected for August, according to consensus cited by FXStreet.
uncertain
growth → expect → FXStreet
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Core PCE inflation, which excludes food and energy prices, rose 0.2% on-month in August, below 0.3% consensus, and by 3.0% year-on-year, less than 3.3% consensus.
asserted
which → read → year
The core PCE measure is the Federal Reserve’s preferred inflation measure.
asserted
measure → prefer → ?
The figures saw the dollar fall as interest rate hike bets were pared back, while US bond yields eased slightly.
asserted
yields → see → ?
Kathleen Brooks, research director at XTB, said: “Expectations of a Fed rate hike in October have dropped sharply.
asserted
Expectations → say → October
The market now sees a 37% chance of a hike from the Fed next month, down from a 70% chance last week.”
asserted
market → see → chance
The euro rose to 1.1359 dollars from 1.1335 dollars.
asserted
euro → rise → dollars
Against the yen, the dollar was trading at 157.15 yen, down from 157.59 yen.
asserted
dollar → trade → yen
The yield on the US 10-year Treasury was quoted at 5.28%, trimmed from 5.29%.
asserted
yield → quote → %
The yield on the US 30-year Treasury was quoted at 5.62%, down from 5.63%.
asserted
yield → quote → %
Ksenia Bushmeneva, economist at TD Economics, thinks that while the data paints a “slightly better picture on the inflation front”, another Federal Reserve rate hike by the end of this year is the “most likely outcome”.
“This week’s employment report will help decide whether they go again in October or wait until December,” Ms Bushmeneva added.
asserted
Bushmeneva → think → December
Friday sees the nonfarm payrolls report.
asserted
Friday → see → report
On Wednesday, figures from payroll processor ADP showed private employers added 90,000 jobs in September, up sharply from a downwardly revised 36,000 in August.
asserted
employers → show → August
The August figure was previously reported at 38,000.
asserted
figure → report → 38,000
In the UK, figures showed the UK economy grew at a stronger pace than expected in the second quarter of the year.
asserted
economy → show → year
According to data from the Office for National Statistics, gross domestic product expanded 0.5% quarter-on-quarter in the three months to June 30, upwardly revised from a previously reported 0.4% increase.
uncertain
product → accord → increase
It still represents a slight slowdown from a 0.6% climb in the first quarter.
asserted
It → represent → quarter
Rob Wood, chief UK economist at Pantheon Macroeconomics, said the figures show that the economy rose at a “solid clip” in the quarter despite higher energy prices and borrowing costs.
“Business investment also rose by a hefty 1.8% quarter-to-quarter and was revised up fractionally, while government spending growth was cut.
asserted
growth → say → quarter
All told, the latest data show a healthy mix of growth, in our view,” Mr Wood said.
asserted
Wood → tell → view
The pound was quoted at 1.3276 dollars on Wednesday, up from 1.3210 dollars at the same time on Tuesday.
asserted
pound → quote → Tuesday
Against the euro, sterling firmed to 1.1688 euro from 1.1656 euro.
asserted
sterling → firm → euro
Financial markets found some support in easing oil prices.
asserted
markets → find → prices
Brent oil was quoted at 103.82 dollars a barrel in London on Wednesday at the time of the equity market close, down from 104.44 dollars late on Tuesday.
asserted
oil → quote → Tuesday
David Morrison at Trade Nation noted that the decrease came alongside confirmation that the US and Iran are “communicating, albeit through mediators, with a view to ending hostilities.
asserted
US → note → hostilities
There was also some good news from Saudi Arabia as operations on the East-West pipeline have restarted”.
asserted
operations → be → pipeline
The fact that the pipeline is open “provides some relief and has helped oil prices retreat,” he added.
asserted
he → provide → relief
On the FTSE 100, SSE rose 2.2% ahead of Thursday’s trading statement, while miner Antofagasta climbed 3.2% and Reckitt Benckiser 2.1%.
asserted
Benckiser → rise → statement
Gold was quoted at 4,158.28 dollars an ounce, little moved from 4,157.46 dollars.
asserted
Gold → quote → dollars
On the FTSE 250, Saga stormed 23% higher as it said it was on course to meet mid-term targets ahead of schedule after reporting first-half results ahead of expectations.
asserted
it → storm → expectations
The Kent, England-based provider of products and services for people over 50 said underlying pre-tax profit soared 98% to £46.6 million from £23.5 million, and trading earnings before interest, tax, amortisation and depreciation rose by 35% to £90.9 million from £67.5 million, both being around 13% better than consensus.
asserted
both → base → consensus
As a result, the FTSE 250-listed company now expects to reach its targets of £100 million underlying pre-tax profit and a leverage ratio of below 2.0 times, before the original target date of January 2030.
asserted
company → list → January
…and 9 more, not listed.
The Aporia
