The $DJIA(.DJI)$
After Wednesday's CPI data showed sign of inflation cooling. U.S. stocks mostly rose. And this data brings a glimmer of light for the economy and the market. It remains to be seen, however, that inflation peaks. Although the global demand growth rate, is indeed much slower than economists expected. This helps alleviate many supply chain issues. It also helps to reduce and alleviate some of the food pressure in inflation, But for a market that has been bingeing since mid-June. It's too early for such a rally
In addition, the CPI in July was slightly lower than the previous high. This relieves the pressure to some extent. But core inflation remains near 6% for now. That's triple the Fed's 2% target, far from a sustainable level. Before the fed funds rate approaches core CPI. It's hard for the Fed to slow down the pace of rate hikes
You must be wondering why everyone cares so much about raising interest rates. Because of the 2008 financial crisis. Many economists are beginning to avoid ultimate pressure. What is ultimate pressure? The economy can't be too hot or too cold. Overheating will lead to a subprime mortgage crisis. Long-term stability is the most important competition faced from China. America needs to strives for stability
What's on this week:
U.S. retail sales monthly rate, U.S. initial jobless claims, Philadelphia Fed manufacturing index, API/EIA crude oil inventories, etc. Investors can focus on the minutes of the Fed's FOMC monetary policy meeting in July and the results of the Hang Seng Index series review by the Hang Seng Index Company in the second quarter of 2022
Sunny Optical Technology, Weimeng Group, Ii Auto, Mavericks Electric, Tencent Holdings, Hong Kong Stock Exchange, WuXi Biologics, Target, NetEase, Cisco, Xiaomi Group and other companies will announce their results
Comments