Amid positive sentiment of producer-level deflation, Nasdaq rose 0.7% after falling more than 5% on Tuesday. US MoM Final Demand PPI data for August recorded -0.1% deflation (Vs. Surv. -0.1%; Jul. -0.4%) or continued deflation for the second month in a row, providing slight positive sentiment on Wall Street, after CPI MoM for the same period surprisingly recorded an inflation at +0.1% (Vs. Surv. -0.1%; Jul. +0.0%), amidst falling gasoline and gas prices in August. On an annual basis, US PPI Final Demand Aug. up +8.7% (Vs. Jul. +9.8%) or the smallest inflation rate since August 2021. Meanwhile, NHKSI Research sees that the combination of CPI and PPI makes PCE Core Deflator Aug. YoY is projected to remain high, one of the Fed’s indicators to set the FFR rate.
Economic data supported the JCI, as it continues to test the psychological level of 7,300. Today, investors are looking forward to the release of domestic economic data, where Aug. Trade Balance is projected to a surplus of +USD4Bn (Vs. Jul. +USD4.2Bn), based on a Bloomberg survey. This projection, along with Exports and Imports YoY in the same period, is expected to grow 19.9% (Vs. Jul. 32.0%) and 31.6% (Vs. 39.9%). NHKSI Research sees that JCI will move Bullish or remain in the Uptrend Channel, with Support: 7,250-7,220 / 7,180-7,170 and Resistance: 7345-7,355 / 7,500 / 7,600.
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