The rate of inflation in the UK continues to rise: it climbed to 10.1% per year

Trade overview: current reports, trends, indices, stock prices, bonds, foreign exchange and commodities and analyst recommendations

09:13

Inflation in the United Kingdom continues to rise: the consumer price index in the Kingdom registered an increase of 0.9% in July and reached 10.1% in the last 12 months, a record of 40 years. Economists expected an increase to 9.8% in July, compared to 9.4% in June.

07:55

Asian stock markets are trading in a positive trend today. The Hang Seng index rises by 0.8%, while in Tokyo the Nikkei index climbs by about 1%. Trading in futures contracts on US stock market indices shows stability.

In the commodity trading arena, oil contracts are rising slightly. Bitcoin rises slightly and trades around $24,000.

Trading on Wall Street ended last night with a mixed trend. The Dow Jones index rose 0.7% on Thursday in a streak of gains, the Nasdaq index retreated 0.2% and the S&P 500 advanced 0.2%.

Today (at 21:00 Israel time) the minutes of the last Fed meeting will be published.

Deutsche Bank economists point out, in their weekly review, that “Impressively, the Nasdaq reached a bull market milestone in intraday trading a few days ago, when the rally that started in mid-June gained momentum during the report season. The stock market was swept away by the good report season these days – that it would be irrational and therefore unlikely, or that the markets expect a mild recession that would be considered a soft landing. This is what happened during the global slowdown in 2015/2016 when the companies’ profitability did not rise but neither did it fall too much. Looking back today, we know that there was talk of a recession at the time but It did not materialize. Assuming the soft landing scenario, today’s market pricing for the years 2023-2024 is comfortable with the fact that 2 interest rate cuts are expected each year.”

It is also noted there that “unsurprisingly, the MOVE index, which measures the volatility in the bond markets, has risen in recent weeks to a level last seen during the pandemic months in 2020 and is trading at a high level compared to the Vicks index, which examines the volatility in the stock markets. Therefore, with the prospects for a recession rising and inflation remains high, bond markets will continue to be volatile.”

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