Survey: US booked deflation in August. NHKSI Research observes that Bloomberg survey, US Headline CPI Aug. MoM, started to post -0.0% deflation (Vs. Jul. +0.0%), as fuel prices continued to fall. Previously, US Headline CPI Jul. YoY eased to 8.5% (Vs. Jun. 9.1%), as fuel and energy prices fell broadly, touching 7.7% and 4.6% MoM deflation, respectively. This data complements our projection that the Fed will only need to raise the FFR +50Bps in September, with the FFR at 3.25%-3.50% FY22. Meanwhile, although the pressure is sloping, Wall Street has weakened again at the beginning of the week. Front Loading speculation of continued increase of FFR +75Bps, widening UST2Y Yield Inversion (3.43%) Vs. UST10Y (3.11%) up to 32Bps.
Double Combo of inflation and rising fuel prices, challenges to JCI in September. In addition to Powell’s Hawkish aggressive speech at the Jackson Hole symposium last Friday, the tug of war on the increase in Pertalite and Solar subsidized fuel prices had made the JCI opened Gap Down by more than 1%, before finally closing only 3 points lower. Meanwhile, technology led the sectoral decline, down more than 2%. GOTO shares were depressed during trading, before finally strengthening slightly, after the delay in the online taxi tariff increase. The lack of sentiment in economic data makes NHKSI Research project that JCI Possible Consolidation will continue, with Support: 7,110-7,100 / 7.080- 7,060/7,015-7,000 / 6,950-6,930 and Resistance: 7,150 / 7,200-7,230.
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