Latest Finance-Economy News
US CPI Inflation Rises 0.2% MoM, Below Expectations
The US consumer price index increased 0.2% month-on-month in January, lower than the expected 0.3%, with annual inflation at 2.4% versus 2.5% forecast. Core CPI rose 0.3% as expected, reinforcing hopes for Federal Reserve rate cuts in 2026. Markets reacted cautiously, viewing it as one data point amid mixed signals like higher hourly earnings.
Markets Price in Three Fed Rate Cuts for 2026
CME FedWatch tool now favors three 0.25% rate cuts in June, September, and December 2026, a dovish shift for the USD after mixed US data including lower unemployment to 4.3%. This follows CPI slightly missing expectations but hotter wage growth earlier.
A weakly bearish USD bias is sensible short-term.
Japanese Yen Surges 3% on Election Victory
The Yen strengthened nearly 3% against USD after Japan's ruling coalition's strong election win, forming its most stable government in years. This drove USD/JPY lower amid broader forex shifts.
Analysts expect continued volatility in pairs like USD/JPY.
S&P 500 Eyes New Highs Despite Weekly Losses
US S&P 500 fell 1.4% last week but targets new highs amid high volatility; Dow down 1.2%, Nasdaq 2.1%. AI disruption fears pressured sectors like finance (Charles Schwab -10.8%) and real estate.
US markets steady post-CPI, closed Monday holiday.
ASX 200 Nears Record High, Up 0.6% Pre-Open
Australia's S&P/ASX 200 set to open 0.6% higher, extending 2.4% weekly rally, less than 200 points from October record. Earnings from BHP, Rio Tinto in focus amid intensifying season.
Global caution persists with US holiday and China Lunar New Year closure.
China Markets Closed for Extended Lunar New Year Holiday
Shanghai and Shenzhen exchanges closed Feb 16-23 for Spring Festival, resuming Feb 24; Hong Kong and Singapore half-day Feb 16. Expect thin liquidity, jumpy volatility, and reopen gaps in FX/commodities.
Record travel surge supportive for consumption but disrupts trading.
Japan Q4 GDP Expected at 0.4% QoQ, 1.6% YoY
Japan's fourth-quarter GDP forecast to expand 0.4% quarter-on-quarter, lifting annual growth to 1.6%, driven by construction recovery and strong chip exports. Data due today amid Yen strength post-election.
Fiscal spending boost eyed more in Q1 2026.
Swiss Franc Strengthens on Unexpected CPI Deflation
Swiss CPI showed -0.1% month-on-month deflation versus no change expected, bolstering the Franc. This contributed to forex shifts alongside Yen gains.
No major market disruption noted.
AI Fears Widen Selloff in Equities Beyond Tech
Investor anxiety over AI disruption hit real estate (CBRE -16%), finance (Morgan Stanley -4.9%), and media (Netflix -6%). Pressure spread from software to trucking and services.
S&P 500 marks second straight weekly loss.
Upcoming US FOMC Minutes and Fed Bowman Speech
FOMC minutes release at 7:00 PM UTC today, alongside Fed Bowman speech at 6:00 PM and 20-Year Bond Auction. Net Long-term TIC Flows and API Crude Oil data also due.
Could influence rate cut expectations post-CPI.