ICE Newcastle back to above USD400/Ton, the energy sector strengthens the past week. Last week’s strengthening of the JCI was also a positive response to the sloping of US Consumer and Producer level inflation, which may potentially ease the Fed’s Hawkish stance. Average US retail fuel price was under USD4/Gallon, the lowest since March 2022. As a note, fuel price broke record at USD5.02/Gallon last June. Both YoY US Headline and Core CPI in July declined to 8.5% (Vs. Jun. 9.1%) and 5.9% (Vs. Jun. 5.9%). Meanwhile, MoM US Final Demand PPI deflated 0.5% (Vs. Jun. +1.0%). The decline of PPI and CPI increased the bet in Futures market that FFR increase in September will be +50Bps (Vs. Prev. +75Bps). Last week, JCI went up 0.6%, with Energy leading the sectoral strengthening with an increase of 2.8%.
Download full report HERE.