Global stocks tumble after US inflation data fuels bets on further interest rate hikes

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Global stocks tumble after US inflation data fuels bets on further interest rate hikes via IrishTimesBiz

The two-year Treasury yield, the most sensitive to policy changes, climbed further in Asia after jumping as much as 22 basis points, pushing it more than 30 basis points above the 10-year rate and deepening an inversion in what is generally a recession warning. Australia’s benchmark 10-year yield jumped 10 basis points.

The US consumer price index increased 0.1 per cent from July, after no change in the prior month, Labor Department data showed. From a year earlier, prices climbed 8.3 per cent, a slight deceleration but still more than the median estimate of 8.1 per cent. So-called core CPI, which strips out the more volatile food and energy components, also topped forecasts.

A gauge of the dollar fluctuated after climbing more than 1 per cent on the CPI report. The greenback’s strength weighed Asian currencies, with the Korean won falling about 1.5 per cent. The People’s Bank of China set the daily reference rate for the yuan at the strongest bias on record versus the average estimate in a Bloomberg survey of analysts and traders.

 

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