The up 7.9% that registered inflation in the United States in the last twelve months, the highest percentage in the last 40 yearsproduced a sudden stop in the escalation of prices that most assets had been registering, especially raw materials, of which only gold was preserved as a refuge of value for investors.
In this framework, this Thursday the yield of the 10-year treasury bonds was above 2%, the highest level since last February 25, after knowing the inflation data.
Meanwhile, gold futures rose 0.8% up to $2,005 per ounce when investors once again chose the metal as a haven asset; while the rest of the markets had a session marked by a negative sign.
Although the jump in consumer prices in the United States was in line with forecasts, the number reported this Thursday reinforced the hypotheses that the Federal Reserve (FED) it will begin in the short term to raise interest rates to contain inflation that some economists see above 8% due to the ban on importing Russian crude oil and gas.
The FED plans a two-day meeting for Tuesday and Wednesday of next week, where it will have to decide whether to raise its interest rate by 25 or 50 basis points.
The European Central Bank (ECB) also announced that will reduce asset purchases faster than planned While evaluating the economic consequences of the Russian invasion of Ukraine.
The ECB said in a statement that it will end its bond-buying program in the third quarter, economic data permitting, and that it is ready to review this decision if the outlook changes.
The barrel of the WTI variety down 2% to $106.50 while the Brent rate fell 1.3% and was agreed at 109.70 dollars, according to figures reported by the New York Mercantile Exchange (NYMEX).
Oil is starting to slide as investors worry that “stagflation” risks could weigh on the near-term oil demand outlook.
Analysts quoted by the Bloomberg agency considered that the latest inflation report in the US showed that everything became more expensive and that the war in Ukraine will probably maintain this upward trajectory in prices, well into the summer, which could lead to the destruction of oil demand.
Inflation in the US is the highest in 40 years and is expected to continue rising.
The price of wheat fell this Thursday for the third consecutive round in the Chicago market and was below US$ 400 per ton, while soybeans and corn marked increases in their prices.
In this way, the May wheat contract fell 9.52%, to settle at 399.40 dollars per ton, while the July position marked a reduction of 5.85% to 384.06 dollars per ton.
US stocks fell this Thursday in New York as a result of the rise in inflation in the United States and due to the uncertainty derived from the conflict in Eastern Europe, after the impasse in the negotiations between Moscow and Kiev to reach a cessation of hostilities .
The Dow Jones industrial average fell 0.3%, the expanded S&P 500 index fell 0.4% while the Nasdaq technology indicator fell 1%, according to data provided by the New York Stock Exchange (NYSE).
Negotiations between the foreign ministers of Russia and Ukraine, in Antalya, Turkey, ended up with little progress on vital issues such as a ceasefire or safe passage for civilians and humanitarian aid.
The war in Ukraine will make it more difficult to control inflation. Energy and food prices continue to rise and will impact global demand.
Managing Director of the International Monetary Fund (IMF), Kristalina Georgievanticipated this Thursday that the agency will cut its global growth forecast due to the war in Ukraine, due to the increase in the price of food and energy, while maintaining that a Russian default is no longer “an unlikely event”, according to Agence France Press reported.
Georgieva said in Washington that “we have a tragic impact from the war against Ukraine, we have a major contraction in Russia, and we see the likely impact on our prospects for the world economy.”
In Europe, stocks closed lower as investors monitored the war in Ukraine and fluctuations in commodity prices.
The European Central Bank (ECB) announced that it will reduce asset purchases faster than planned as it assesses the economic consequences of the Russian invasion of Ukraine.
In the leading Euro Stoxx 50 index, which fell 3%, the rise of the French Vivendi (1.5%) stood out, while the Irish CRH, the German Bayer and the Finnish KONE Oyj remained unchanged.
In London, the FTSE fell 1.3%, in Frankfurt, the DAX fell 2.9% and in Paris, the CAC 40 contracted 2.8%.
In the Mediterranean, the IBEX 35 in Madrid fell 1.2% while the MIB in Milan deepened its slide to 4.2%.