Starting from last night, the global financial market has been waiting for the United States to release the latest CPI data.

At 20:30 Beijing time today, the United States announced the latest CPI data as expected, but there was inflation far beyond expectations, and the global financial market immediately changed its face.

For a while, the exchange rates of various countries fell sharply, European and American stocks fell sharply, gold fell sharply, and crude oil fell sharply.

It seems that only the US dollar index is still rising.

01, CPI

Last month, the CPI in the United States quickly fell from 9.1 in the previous month to 8.5, and recently, energy prices have further fallen, and food prices have also fallen to a certain extent, so the market expected that this month's CPI data will further fall to 8.1%.

But I didn't expect that the CPI data announced by the US Department of Commerce tonight would reach 8.3%.

Although it has fallen again from 8.5% last month, it has exceeded market expectations and shocked the entire global financial market.

Advertisement

Before this, everyone had already expected that the Federal Reserve would raise interest rates by a large margin of 75 basis points in September, and there is no doubt about the interest rate hike of 75 basis points after this news came out.

The market is now worried whether the Federal Reserve will continue to raise interest rates by 75 basis points or more at the next meeting.02, Exchange Rate

The news was announced at 20:30 Beijing time, and subsequently, various indices in the financial market underwent rapid changes.

A high CPI implies that the Federal Reserve still needs to raise interest rates, and the expectation of rate hikes is directly reflected in the US Dollar Index, which is expected to continue rising in the short term. Currently, the US Dollar Index has broken through 109, whereas before the news was announced, the original index was only at 107.7. (See the chart below: The US Dollar Index soars straight up)

Correspondingly, the Chinese yuan exchange rate also experienced a significant decline.

Before the news was announced, the exchange rate was 6.928 USD/CNY, but within just 20 minutes after the news was announced, it had risen to 6.9645. (See the chart below: USD/CNY, offshore exchange rate)

03, Commodities

In terms of bulk commodities, the trend of gold is particularly persuasive.

In the previous days, gold was in a fluctuating upward trend, but as soon as the news was announced, the price of gold plummeted from $1742 to $1720 in a straight line.

A similar performance was also seen in crude oil, with the WTI international crude oil price previously on the rise, with the highest previously at $89.31, now quoted at $87.20.

04, Stock MarketIn addition, the stock market reaction has been quite significant.

European stock markets were rising across the board before the news was announced, but they turned into a full-line decline after the news came out.

Taking the German DAX index as an example, it had already risen to 13,550 points before the news was announced, but it has now fallen to 13,330 points. It has fallen by 200 index points in a short period of time, and it is still falling at present. (See the chart above)

The current decline of the three major indices in the UK, France, and Germany is around 0.5%, but before that, the increase of the three major indices was close to 1%.

The U.S. stock market has not opened yet, but we can see the price changes of the three major indices in the futures market, which also showed a straight decline after the news was announced.

The NASDAQ index had previously risen by 0.8%, but it has now fallen by 2.85%, and during the writing of this article, the NASDAQ futures are still continuing to fall.

At the same time, the Dow Jones index has also amplified the decline to 470 index points.

It seems that before this, the market was overly optimistic about the U.S. economy.