US Treasury Secretary Janet Yellen on Sunday said she was hopeful the US economy could avoid a recession, but that the Fed would need to skilfully manage interest rates and also rely on “some good luck to achieve what we sometimes call a soft landing. Oil prices gained Monday but remain pressured by the possibility of global demand weakening as growth slows and China’s harsh zero-Covid policy continues to sap economic activity. The inflation print “may well see further improvement as petrol prices have continued to pull back”, he said. Traders expect the Fed to impose another large rate hike next week, after two 75-basis-point increases already.Ĭlifford Bennett, chief economist at ACY Securities, said he expected stocks to “continue to drift higher” ahead of Tuesday’s CPI data. Investors worldwide are awaiting key US inflation data for August, due Tuesday, with the consumer price index (CPI) expected to ease slightly to eight percent - still well above the Fed’s two-percent target. Markets in Hong Kong, mainland China and South Korea were closed for a public holiday. Tokyo closed with a gain of more than one percent thanks to a weaker yen.
On Wall Street, stocks also advanced extending last week’s rally. The ECB raised the key rate by a historic 75 basis points last week, and markets expect a similar-sized hike at an October meeting.įrankfurt led the way, closing more than two percent higher, followed by Paris and London not far behind after data showed the British economy rebounded slightly in July. The European single currency rocketed more than 1.4 percent against the dollar and 1.6 percent versus the yen before trimming gains around midday.
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