Technical rebound ahead of August CPI data. Nasdaq gained more than 2%, leading Wall Street’s gains ahead of Aug. US CPI YoY data which is projected to record inflation sloping to 8.1% (Vs. Jul. 8.5%). Wall Street’s appreciation also indicates that investors have anticipated the Fed’s aggressive Hawkish stance. The Fedwatch Tool projects the probability of a September FFR hike of +75Bps increasing to 90% from 57% the previous week. Meanwhile, the release of economic data last Friday shows that US Wholesale Inventories MoM was revised up 0.6% or lower than reported, 0.8% in July.
Inching closer to the psychological 7,300 level. NHKSI Research projects that JCI will move Bullish, with Support: 7,200-7,290/7,160/7,080-7,060/7,015 and Resistance: 7,270-7,288/7,300/7,350. The absence of economic data releases today means investors start to pay attention to the release of US CPI data (Tuesday, 13/9) and US PPI (Wednesday, 14/9) for the August period, each of which is projected to experience deflation on a monthly basis. Over the weekend, the JCI managed to close up 11 points to 7,242, after last week experiencing a number of negative sentiments such as the ECB’s aggressive Hawkish, the European energy crisis and the impact of rising domestic subsidized fuel prices.
Download full report HERE.
