investingLive Americas market news wrap: Hawkish Fed worries ebb after PPI

US October PPI +6.5% vs +6.6% expectedFed's Goolsbee: We're not on the way to 2% inflation and we have to deal with thatGoldman Sachs: We can explain almost the entire US inflation overshoot by tariffs and the war in IranFed's Collins: I would think some additional policy tightening is warranted soonFed's Daly: In all likelihood, we need to raise ratesMarkets:USD leads, AUD lagsWTI crude oil up 43-cents to $89.17US 10-year yields up 3.8 bps to 5.14%S&P 500 down 0.4%, Nasdaq down 0.9%Gold up $4 to $3880The PPI numbers were something of a respite to the drumbeat of inflation worries as the main numbers were 0.1 pp below estimates.

That was generally balanced by non-stop Fed talk on inflation, with Goolsbee saying the recent CPI number was "borderline alarming" and others striking a similar tone.

BofA was out with a note to change its Fed call to three consecutive hikes in Dec, Jan and March.

All that helped to keep a bid in the dollar, which finisehd at hte best levels of the day.

The euro continues to test the Liberation Day lows.In equity markets, the closing levels don't tell the story as the selling was heavily concentrated in AI and chip names.

Continue reading at the original source →