The FTSE 100 FACED MIXED TRADING WEDNESDAY AS UK INFATION DATA CAME IN ABOVE FORECASTS, WHILE OVERNIGHT US Tech Stock Carnage Weighed on Global sentiment, with nvidia falling 3.5% and Palantir Technologies Plummending 9% In Wall Street’s Heaviest Tech Seloff Since April.
UK inflation exceptions
The latest uk inflation figures delivered an unwelcomome surprise, coming in ABOVE ECONOMIST FORECASTS and potentially complicating the bank of England’s monetary policy path. The Higher-Than-Expected Inflation Reading Raises Questions About The Timing and Magnitude of Potential Interest Rate Cuts, Creating Uncertaintint for Uk Equity Markets.
The Overshoot Adds Pressure On Household Finances Already Strained By The Cost of Living Crisis, While Potentially Forcing The Bank of England to Maininin A More Hawkish Stance The Previous Previous Anticipated by Markets.
Global Tech Rout Sp preads to Asian Markets
Asian Equities Opened Lower Following Wall Street’s Tech-Focused Seloff, With Japan, Australia, and South Korea All Posting Declines While The MSCI Asia Pacific Index Fell 0.3%. Nasdaq 100 Futures Slipped 0.2% After Tuesday’s 1.4% DropMarking The Second-WortS Decline Since April’s Tariff-Induced Shock.
The seloff was driven by growing investor concerns that the Technology Rally you have advanced too Far and too quicklyPrompting Widespread Profit-Taking Ahead of Friday’s Crucial Jackson Hole Symposium where fed chair Jerome Powell is Expected to Provide Policy Guidance.
Jackson Hole Anxiety Builds
Market participants are increasingly Treading Cautiously Ahead of Jackson HoleWith Traders Firming Up Bets On A SEPTEMBER RATE CUT WHILE REMAINING UNCERTAIN ABOUT POWELL’S TONE AND THE LONGER-TERM TRAJECRY OF FED POLY. The Symposium has emerged as This Week’s Most Mostant Market Catalyst.
“Wall Street Finally Hit An Air Pocket Overnight as The US Summer Lull Thins Liquidity and Weakens The Bid for Risk Assets, Specially High Flying Tech Stocks,” Noted Kyle Rodda, Senior Market Analyst at Capital.com. “There’s Also A Degree of Trepidation Heading into the Jackson Hole Symposium”.
The Combination of Higher UK Inflation, Global Tech Weakness, And Jackson Hole Uncertainty Created A Challenging Environment for Risk Assets, with the 10-YEAR Treasury Yield Dropping Three Basis Points to 4.31% As Investors Sought Safer Havens. Oil prices managed modest 0.4% GainWhile The Dollar Extended Gains for a Third Consecutive Day.
